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Caterpillar Surges on AI Infrastructure Boom
11 Feb
Summary
- Caterpillar shares reached record highs, doubling in 12 months.
- Company supplies critical equipment for AI data centers and power.
- Energy and Transportation segment revenue surpassed construction for first time.
Caterpillar, a company with a history dating back to 1925, is experiencing unprecedented growth in the AI era. As of February 10, 2026, its market capitalization has reached approximately $347 billion, with shares doubling over the past 12 months to an all-time high of $742. This performance significantly outpaces major tech companies like Apple and Microsoft, as investors recognize Caterpillar's vital role in supporting AI-driven infrastructure.
Rather than developing AI technology directly, Caterpillar provides essential equipment such as turbines for on-site data center power, generator sets for backup, and integrated microgrid systems. This strategic focus has led to record full-year sales of $67.6 billion and a backlog of $51 billion, indicating strong future demand. The company's CEO, Joseph Creed, emphasizes a strategy centered on commercial excellence, technological leadership, and operational transformation.
The company's revenue mix has notably shifted, with its Energy and Transportation segment generating $28.8 billion in annual revenue for 2024, exceeding the $25.5 billion from its construction industries business for the first time. This evolution underscores the growing significance of power generation and energy systems within Caterpillar's portfolio, positioning it as a surprising beneficiary of the ongoing AI boom.
