Track market-moving stories before they get noisy

Most investors probably still think of Caterpillar (CAT +0.70%) as a construction-equipment company -- bulldozers, excavators, mining trucks. But the order book tells a different story.

Caterpillar ended the first quarter with a record backlog of $63 billion, up $28 billion, or 79%, from the first quarter of 2025, with all three of its primary segments contributing. Indeed, almost $12 billion of that arrived in the quarter itself.

And a big share of the new demand behind that number has little to do with construction sites. It comes from data centers.

The market has noticed. Shares have roughly doubled off their 52-week low, to about $815 a share as of this writing, though they'd have to climb more than 30% to get back to their high. At about 41 times earnings, Caterpillar is arguably priced like an artificial intelligence (AI) infrastructure company, not a cyclical equipment maker.

Caterpillar reports second-quarter results before the market opens on Tuesday, Aug. 4. Is AI power demand still filling the order book? And is the backlog converting into delivered revenue on schedule?

Image source: Getty Images.

Why data centers buy Caterpillar engines Caterpillar's large reciprocating engines (essentially massive generator engines) and gas turbines can power a data center on site. They serve as backup when the grid fails, or as primary power for facilities that don't want to wait for a grid connection.

The demand showed up all over the company's most recent results. Power generation sales (one slice of Caterpillar's power and energy segment) rose 41% year over year in the first quarter of 2026, to $2.8 billion from $2.0 billion. The growth came from large reciprocating engines and turbines, driven primarily by data center applications. That puts power generation on an annual run rate above $11 billion. Companywide, sales and revenues rose 22% year over year to $17.4 billion, and adjusted earnings per share came in at $5.54, up 30% from $4.25.

Caterpillar is responding by expanding its large reciprocating engine capacity to nearly triple 2024 levels, and most of the additional capital expenditures land from 2027 through 2029. Management raised its long-term sales growth targets alongside the announcement.

"Customers are committing to longer-term orders with some orders well into 2028," CEO Joe Creed said on the company's first-quarter earnings call.

Orders like those stay on the books a long time. That's a big part of how the total reached $63 billion.

What the second-quarter report has to show The first thing I'll look for on Tuesday is the backlog number itself. A year ago, it stood at about $35 billion. And roughly $23 billion of the increase since then arrived in just the last two quarters -- the build has been accelerating, not slowing.

In short, orders are still coming in far faster than Caterpillar can deliver them.

The second thing is conversion. A backlog only turns into revenue when the machines actually ship, and some of these orders stretch years into the future. Caterpillar now holds the equivalent of more than three and a half quarters of revenue in its order book.

So far, though, conversion is working: Sales grew 22% last quarter even as the backlog swelled. On Tuesday, I want to see strong revenue growth alongside an order book that hasn't stopped climbing.

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Of course, there are risks. New York imposed the nation's first statewide moratorium on new hyperscale data centers (the largest class of facilities) in July, pausing state environmental permits for big projects whose applications weren't already deemed complete, for up to a year. If more states follow, some of the pipeline behind 2027 and 2028 orders could shrink or slip.

A long-dated backlog can also be rescheduled or, in some cases, canceled.

That's the main reason I'm not chasing the stock here. At about 41 times earnings, Caterpillar is priced as if the power boom keeps compounding without interruption -- and July's news out of New York shows what an interruption could look like.

Ultimately, I like the business Caterpillar is becoming. A $63 billion backlog gives a cyclical company visibility it rarely gets, and management is confident enough in the demand to nearly triple its large engine capacity. For now, I'm not a buyer. If Tuesday's report shows the backlog still climbing and power generation holding its pace, I'll take another look. But I'd want a better price than this one.

Caterpillar stock has pulled back substantially, moving from the year-to-date high of $1,073 to the current $809. It has dropped in the past six consecutive weeks, its longest streak in years. This article explores whether the CAT stock will continue its strong downtrend as its earnings loom.

CAT shares have been in a strong freefall in the past few weeks as investors have dumped the top AI winners. 

While Caterpillar is known for its large machines, it has also become a big name in the artificial intelligence industry because of its power generation business, which has become its fastest-growing one. Its generators are used widely across data centers in the United States and other countries.

The most recent results showed that Caterpillar’s power and energy segment made over $7 billion in sales, up by 22% from the same period last year. Its profit jumped to $1.45 billion, while its profit increased $162 million. 

This business will likely continue growing in the foreseeable future as large technology companies have hinted that they will continue spending. Alphabet, the parent company of Google and YouTube, announced that it would spend over $205 billion in spending. 

Microsoft, Oracle, OpenAI, and Tesla are also continuing their spending, which will lead to more demand for power equipment over time. 

The construction segment also grew substantially in the first quarter, hitting $7.2 billion from $5.2 billion in the same period last year. Its segment profit jumped to $1.5 billion. 

The resource segment, which provides equipment used in the mining industry, made $3.8 billion in revenue, while its profit dropped to $378 million. In total, Caterpillar ended the quarter with a record revenue backlog of $63 billion, a 79% annual increase.

Looking ahead, Caterpillar stock will next react to the upcoming earnings, with analysts expecting its revenue growth to continue. The average estimate among analysts is that its revenue grew by 16% in the second quarter to $19.2 billion. For the year, analysts expect the revenue figure to come in at $76.6 billion, up by 13% YoY. Caterpillar’s earnings per share is expected to move from $4.72 last year to $6.2. 

The company faces some major challenges. For one, it is highly overvalued, with the forward price-to-earnings ratio being 32. It has remained above other popular companies like Micron and Nvidia. 

At the same time, there is a risk that the company will struggle as investors start rotating from AI winners to companies that have struggled.

Caterpillar stock chart | Source: TradingView

The daily chart shows that the Caterpillar share price has been in a strong sell-off in the past few weeks, as we predicted. It has dropped from the year-to-date high of $1,073 to the current $840. It remains above the important support level of $765, the 38.2% Fibonacci Retracement level. 

The stock has also found support at the 200-day Exponential Moving Average (EMA), while the Relative Strength Index (RSI) moved to 40. Therefore, the stock will likely be highly volatile after its earnings. The options market suggests that investors are positioning to the upside, with the put/call option of 0.95, suggesting an upside.

Posted by Defense World Staff on Jul 29th, 2026

Amundi grew its holdings in Caterpillar Inc. (NYSE:CAT – Free Report) by 29.4% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,217,637 shares of the industrial products company’s stock after purchasing an additional 503,497 shares during the quarter. Amundi owned about 0.48% of Caterpillar worth $1,571,107,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds also recently made changes to their positions in CAT. Pacific Point Advisors LLC acquired a new position in shares of Caterpillar during the fourth quarter valued at about $579,000. Brighton Jones LLC grew its stake in shares of Caterpillar by 51.5% in the 4th quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company’s stock valued at $2,688,000 after buying an additional 2,519 shares during the period. United Bank increased its position in Caterpillar by 108.5% in the 2nd quarter. United Bank now owns 4,083 shares of the industrial products company’s stock valued at $1,585,000 after buying an additional 2,125 shares in the last quarter. Schnieders Capital Management LLC. raised its stake in Caterpillar by 3.9% during the 2nd quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company’s stock worth $3,551,000 after buying an additional 347 shares during the period. Finally, Alliancebernstein L.P. boosted its holdings in Caterpillar by 6.5% in the second quarter. Alliancebernstein L.P. now owns 572,165 shares of the industrial products company’s stock worth $222,120,000 after acquiring an additional 34,846 shares in the last quarter. Institutional investors own 70.98% of the company’s stock.

Key Caterpillar News Here are the key news stories impacting Caterpillar this week:

Positive Sentiment: Earnings expectations are supportive. Zacks upgraded Caterpillar to Rank #2 (Buy), citing improving earnings prospects. The company is also viewed as having two factors that could support a quarterly earnings beat ahead of next week’s report. Caterpillar Earnings Expected to Grow Positive Sentiment: Strong recent fundamentals provide a cushion. Caterpillar’s latest reported quarter exceeded consensus estimates, with revenue rising 22.2% year over year and earnings per share reaching $5.54 versus the expected $4.65. Investors may be looking for this momentum to continue in the upcoming release. Neutral Sentiment: Investor attention remains high. Caterpillar is a heavily watched industrial stock, and analysts and investors are debating whether its powerful multiyear rally can continue. The company’s shares have gained substantially over five years, raising the importance of future earnings and cash-flow growth. Negative Sentiment: Valuation may be limiting further upside. Fair-value analysis is mixed: earnings multiples appear relatively reasonable, while a discounted-cash-flow estimate suggests the stock is approximately fairly valued. After its extended rally, the shares face a higher hurdle to justify additional gains. Caterpillar Stock Looks Slightly Above Fair Value Negative Sentiment: Analyst sentiment has softened. Erste Group Bank AG downgraded Caterpillar from “buy” to “hold,” adding pressure to the stock’s near-term outlook. Negative Sentiment: Rare-earth supply risks could increase costs or disrupt production. China’s tighter export controls on rare-earth materials used in motors, sensors and control systems may affect Caterpillar’s advanced equipment and force manufacturers to secure more expensive alternative supplies. Caterpillar Faces Rare Earth Squeeze Insider Activity In other news, insider Denise C. Johnson sold 12,605 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the completion of the sale, the insider directly owned 49,825 shares of the company’s stock, valued at $45,236,615.75. This trade represents a 20.19% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the business’s stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total transaction of $14,399,860.54. Following the completion of the transaction, the chief financial officer directly owned 52,935 shares in the company, valued at $48,631,913.85. This trade represents a 22.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 95,773 shares of company stock worth $87,642,635. 0.33% of the stock is owned by insiders.

Wall Street Analyst Weigh In Several equities research analysts have recently commented on the company. Jefferies Financial Group boosted their price objective on Caterpillar from $900.00 to $1,045.00 and gave the company a “buy” rating in a report on Friday, May 1st. Morgan Stanley set a $915.00 target price on Caterpillar and gave the stock an “equal weight” rating in a report on Friday, May 1st. Wolfe Research boosted their price target on shares of Caterpillar from $670.00 to $750.00 and gave the company an “outperform” rating in a research note on Tuesday, March 31st. Rothschild & Co Redburn upped their price objective on shares of Caterpillar from $700.00 to $950.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. Finally, Robert W. Baird raised their price objective on shares of Caterpillar from $1,165.00 to $1,200.00 and gave the company an “outperform” rating in a research note on Friday, June 26th. Fourteen investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $980.57.

View Our Latest Stock Report on Caterpillar

Caterpillar Trading Down 3.6% Shares of CAT stock opened at $841.67 on Wednesday. Caterpillar Inc. has a 52-week low of $405.46 and a 52-week high of $1,073.46. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35. The company has a 50-day simple moving average of $928.73 and a two-hundred day simple moving average of $808.93. The company has a market capitalization of $387.66 billion, a price-to-earnings ratio of 41.89, a PEG ratio of 1.71 and a beta of 1.57.

Caterpillar (NYSE:CAT – Get Free Report) last posted its earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping the consensus estimate of $4.65 by $0.89. The firm had revenue of $17.41 billion for the quarter, compared to analysts’ expectations of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The company’s quarterly revenue was up 22.2% compared to the same quarter last year. During the same quarter last year, the firm earned $4.25 EPS. Research analysts anticipate that Caterpillar Inc. will post 24.87 EPS for the current fiscal year.

Caterpillar Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be paid a $1.63 dividend. This is a boost from Caterpillar’s previous quarterly dividend of $1.51. The ex-dividend date is Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a yield of 0.8%. Caterpillar’s dividend payout ratio is currently 32.45%.

Caterpillar Company Profile (Free Report)

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

Further Reading Five stocks we like better than Caterpillar These 3 Stocks Have Soared in 2026—Can They Keep Climbing? Hasbro’s Earnings Beat Shows Why This Is No Longer Just a Toy Story Rambus: Another AI Phoenix Ready to Rise From the Ashes of Correction Chips & Clips: Memory Tariffs Rewire Tech Supply Chains Want to see what other hedge funds are holding CAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Caterpillar Inc. (NYSE:CAT – Free Report).

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In the latest close session, Caterpillar (CAT - Free Report) was down 1.74% at $873.28. The stock's performance was behind the S&P 500's daily gain of 0.02%. Elsewhere, the Dow saw an upswing of 0.51%, while the tech-heavy Nasdaq depreciated by 0.18%.

Heading into today, shares of the construction equipment company had lost 10.9% over the past month, lagging the Industrial Products sector's loss of 1.06% and the S&P 500's gain of 0.77%.

The investment community will be paying close attention to the earnings performance of Caterpillar in its upcoming release. The company is slated to reveal its earnings on August 4, 2026. It is anticipated that the company will report an EPS of $6.25, marking a 32.42% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $19.31 billion, indicating a 16.56% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $24.87 per share and a revenue of $77.17 billion, representing changes of +30.48% and +14.18%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Caterpillar. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.91% higher. Caterpillar is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Caterpillar is currently being traded at a Forward P/E ratio of 35.74. Its industry sports an average Forward P/E of 15.73, so one might conclude that Caterpillar is trading at a premium comparatively.

We can also see that CAT currently has a PEG ratio of 1.74. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Manufacturing - Construction and Mining industry had an average PEG ratio of 1.58.

The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 178, finds itself in the bottom 28% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Bank of Nova Scotia reduced its holdings in shares of Caterpillar Inc. (NYSE:CAT – Free Report) by 15.8% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 341,679 shares of the industrial products company’s stock after selling 64,218 shares during the quarter. Bank of Nova Scotia owned 0.07% of Caterpillar worth $242,067,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors also recently modified their holdings of the company. Diamant Asset Management Inc. grew its stake in shares of Caterpillar by 68,427.2% in the first quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company’s stock worth $2,224,992,000 after acquiring an additional 3,136,020 shares during the period. Capital International Investors purchased a new stake in Caterpillar in the fourth quarter worth approximately $1,225,317,000. Northwestern Mutual Wealth Management Co. boosted its holdings in Caterpillar by 573.1% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company’s stock worth $861,947,000 after purchasing an additional 1,281,087 shares during the last quarter. Bank of America Corp DE grew its position in Caterpillar by 16.0% in the 4th quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company’s stock worth $3,860,457,000 after purchasing an additional 928,974 shares during the period. Finally, Cynosure Group LLC raised its stake in Caterpillar by 8,359.6% during the 4th quarter. Cynosure Group LLC now owns 513,754 shares of the industrial products company’s stock valued at $294,314,000 after buying an additional 507,681 shares during the last quarter. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Stock Performance NYSE CAT opened at $893.02 on Friday. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64. Caterpillar Inc. has a twelve month low of $405.46 and a twelve month high of $1,073.46. The business has a 50-day moving average price of $928.87 and a 200-day moving average price of $803.52. The firm has a market cap of $411.32 billion, a price-to-earnings ratio of 44.45, a price-to-earnings-growth ratio of 1.74 and a beta of 1.57.

Caterpillar (NYSE:CAT – Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping analysts’ consensus estimates of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The company had revenue of $17.41 billion for the quarter, compared to analysts’ expectations of $16.53 billion. During the same period in the previous year, the firm earned $4.25 EPS. The firm’s revenue was up 22.2% compared to the same quarter last year. As a group, equities research analysts predict that Caterpillar Inc. will post 24.87 EPS for the current fiscal year.

Caterpillar Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be given a dividend of $1.63 per share. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Monday, July 20th. Caterpillar’s dividend payout ratio (DPR) is currently 32.45%.

Insider Activity at Caterpillar In other Caterpillar news, CFO Andrew R. J. Bonfield sold 15,674 shares of the stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total transaction of $14,399,860.54. Following the completion of the transaction, the chief financial officer owned 52,935 shares of the company’s stock, valued at $48,631,913.85. This represents a 22.85% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jason Kaiser sold 5,642 shares of the firm’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $883.03, for a total value of $4,982,055.26. Following the transaction, the insider owned 9,594 shares of the company’s stock, valued at approximately $8,471,789.82. The trade was a 37.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 95,773 shares of company stock valued at $87,642,635 in the last ninety days. Corporate insiders own 0.33% of the company’s stock.

Analyst Ratings Changes CAT has been the topic of several research analyst reports. HSBC increased their price target on Caterpillar from $850.00 to $1,100.00 in a report on Tuesday, May 5th. Wall Street Zen upgraded Caterpillar from a “hold” rating to a “buy” rating in a research report on Saturday, May 2nd. Argus increased their target price on Caterpillar from $820.00 to $990.00 and gave the company a “buy” rating in a report on Tuesday, May 5th. Daiwa Securities Group raised their target price on Caterpillar from $790.00 to $900.00 and gave the stock a “neutral” rating in a research report on Friday, May 1st. Finally, Bank of America upped their price target on shares of Caterpillar from $930.00 to $989.00 and gave the company a “buy” rating in a research report on Friday, May 1st. Fifteen analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $980.57.

Check Out Our Latest Stock Analysis on CAT

About Caterpillar (Free Report)

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

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Alamar Capital Management LLC purchased a new position in shares of Caterpillar Inc. (NYSE:CAT – Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 1,000 shares of the industrial products company’s stock, valued at approximately $708,000.

A number of other institutional investors also recently added to or reduced their stakes in CAT. Diamant Asset Management Inc. grew its position in Caterpillar by 68,427.2% during the first quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company’s stock worth $2,224,992,000 after buying an additional 3,136,020 shares during the period. Capital International Investors purchased a new stake in shares of Caterpillar during the 4th quarter worth approximately $1,225,317,000. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Caterpillar by 573.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company’s stock worth $861,947,000 after acquiring an additional 1,281,087 shares during the period. Bank of America Corp DE increased its stake in Caterpillar by 16.0% in the 4th quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company’s stock valued at $3,860,457,000 after purchasing an additional 928,974 shares in the last quarter. Finally, Cynosure Group LLC increased its stake in Caterpillar by 8,359.6% in the 4th quarter. Cynosure Group LLC now owns 513,754 shares of the industrial products company’s stock valued at $294,314,000 after purchasing an additional 507,681 shares in the last quarter. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Insider Transactions at Caterpillar In other Caterpillar news, CFO Andrew R. J. Bonfield sold 15,674 shares of the business’s stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total value of $14,399,860.54. Following the completion of the transaction, the chief financial officer directly owned 52,935 shares in the company, valued at approximately $48,631,913.85. The trade was a 22.85% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Lange Bob De sold 24,222 shares of the company’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $922.92, for a total transaction of $22,354,968.24. Following the transaction, the insider directly owned 86,029 shares of the company’s stock, valued at approximately $79,397,884.68. This represents a 21.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 95,773 shares of company stock worth $87,642,635 in the last three months. 0.33% of the stock is currently owned by company insiders.

Caterpillar News Roundup Here are the key news stories impacting Caterpillar this week:

Positive Sentiment: Analysts have been raising their outlook on Caterpillar, with one report saying the stock’s fair value estimate was lifted to $970.37 as investors continue to focus on strong demand in construction, energy, data centers, and infrastructure. Caterpillar Stock Fair Value Edges Higher After Analysts Lift Targets Positive Sentiment: Caterpillar was highlighted in several pieces as a stock with AI exposure and reliable dividend growth, which can attract investors looking for both growth and defensive characteristics. These Stocks Offer AI Exposure and Dividend Payouts Positive Sentiment: The company is also being discussed as a “solid defensive play” thanks to its long dividend-increase streak and stable yield, which may help support the stock during uncertain markets. A Boring Dividend Growth Strategy Becomes a Solid Defensive Play (CAT) Positive Sentiment: Caterpillar also announced it will release second-quarter 2026 results on August 4, keeping attention on upcoming earnings that could provide another catalyst for the shares. Caterpillar Inc. to Announce Second-Quarter 2026 Financial Results on August 4 Neutral Sentiment: A local article noted Caterpillar is renovating a recently purchased Texas property, which appears to be a routine real-estate and facilities update rather than a major stock-moving event. Caterpillar embarks on renovations after purchasing property in Texas Analyst Upgrades and Downgrades A number of analysts have commented on CAT shares. Barclays boosted their target price on Caterpillar from $700.00 to $800.00 and gave the stock an “equal weight” rating in a research report on Friday, May 1st. Oppenheimer lifted their price target on Caterpillar from $980.00 to $1,105.00 and gave the stock an “outperform” rating in a research note on Monday, July 13th. Argus boosted their price objective on shares of Caterpillar from $820.00 to $990.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. Evercore reissued an “outperform” rating and issued a $1,103.00 price objective on shares of Caterpillar in a research note on Monday, May 11th. Finally, Rothschild & Co Redburn lifted their target price on shares of Caterpillar from $700.00 to $950.00 and gave the stock a “neutral” rating in a research report on Thursday, May 14th. Fifteen research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $980.57.

Read Our Latest Report on CAT

Caterpillar Stock Down 0.0% Shares of NYSE:CAT opened at $889.79 on Thursday. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64. The company has a market capitalization of $409.83 billion, a P/E ratio of 44.29, a P/E/G ratio of 1.74 and a beta of 1.57. Caterpillar Inc. has a 52-week low of $405.46 and a 52-week high of $1,073.46. The stock’s fifty day simple moving average is $929.39 and its 200-day simple moving average is $801.45.

Caterpillar (NYSE:CAT – Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping analysts’ consensus estimates of $4.65 by $0.89. The firm had revenue of $17.41 billion during the quarter, compared to analysts’ expectations of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The firm’s quarterly revenue was up 22.2% compared to the same quarter last year. During the same quarter last year, the business posted $4.25 EPS. As a group, equities research analysts forecast that Caterpillar Inc. will post 24.87 earnings per share for the current fiscal year.

Caterpillar Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be given a dividend of $1.63 per share. This represents a $6.52 dividend on an annualized basis and a yield of 0.7%. This is an increase from Caterpillar’s previous quarterly dividend of $1.51. The ex-dividend date is Monday, July 20th. Caterpillar’s dividend payout ratio (DPR) is 32.45%.

Caterpillar Profile (Free Report)

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

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Posted by Defense World Staff on Jul 20th, 2026

Assetmark Inc. reduced its stake in Caterpillar Inc. (NYSE:CAT – Free Report) by 30.1% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 20,514 shares of the industrial products company’s stock after selling 8,820 shares during the period. Assetmark Inc.’s holdings in Caterpillar were worth $14,533,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. Cornerstone Advisory LLC boosted its position in shares of Caterpillar by 0.7% during the first quarter. Cornerstone Advisory LLC now owns 1,818 shares of the industrial products company’s stock worth $1,288,000 after buying an additional 12 shares during the period. Advisory Resource Group increased its stake in Caterpillar by 0.8% during the fourth quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company’s stock worth $935,000 after purchasing an additional 13 shares during the period. Sunbeam Capital Management LLC lifted its position in shares of Caterpillar by 1.1% during the first quarter. Sunbeam Capital Management LLC now owns 1,164 shares of the industrial products company’s stock worth $825,000 after purchasing an additional 13 shares in the last quarter. Brandywine Oak Private Wealth LLC boosted its stake in shares of Caterpillar by 2.6% in the first quarter. Brandywine Oak Private Wealth LLC now owns 506 shares of the industrial products company’s stock valued at $358,000 after purchasing an additional 13 shares during the period. Finally, Sylvest Advisors LLC increased its stake in Caterpillar by 3.6% during the 1st quarter. Sylvest Advisors LLC now owns 377 shares of the industrial products company’s stock worth $267,000 after buying an additional 13 shares during the period. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Caterpillar Stock Up 0.1% Caterpillar stock opened at $881.26 on Monday. The stock has a market cap of $405.90 billion, a PE ratio of 43.87, a P/E/G ratio of 1.72 and a beta of 1.57. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.81. The stock’s fifty day moving average is $931.29 and its two-hundred day moving average is $794.97. Caterpillar Inc. has a 1-year low of $405.46 and a 1-year high of $1,073.46.

Caterpillar (NYSE:CAT – Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The business had revenue of $17.41 billion during the quarter, compared to analysts’ expectations of $16.53 billion. During the same period in the prior year, the firm posted $4.25 EPS. The business’s quarterly revenue was up 22.2% compared to the same quarter last year. On average, sell-side analysts expect that Caterpillar Inc. will post 24.87 EPS for the current fiscal year.

Caterpillar Increases Dividend The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be issued a $1.63 dividend. This represents a $6.52 dividend on an annualized basis and a yield of 0.7%. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. The ex-dividend date of this dividend is Monday, July 20th. Caterpillar’s dividend payout ratio is currently 30.06%.

Insider Buying and Selling In other Caterpillar news, insider Denise C. Johnson sold 12,605 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the sale, the insider owned 49,825 shares of the company’s stock, valued at approximately $45,236,615.75. This trade represents a 20.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Lange Bob De sold 24,222 shares of the business’s stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $922.92, for a total transaction of $22,354,968.24. Following the sale, the insider owned 86,029 shares of the company’s stock, valued at $79,397,884.68. This represents a 21.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 95,773 shares of company stock valued at $87,642,635 over the last three months. 0.33% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades Several research firms have commented on CAT. Sanford C. Bernstein boosted their price target on shares of Caterpillar from $769.00 to $879.00 and gave the stock a “market perform” rating in a research note on Friday, May 1st. Oppenheimer boosted their target price on Caterpillar from $980.00 to $1,105.00 and gave the stock an “outperform” rating in a research note on Monday, July 13th. UBS Group reiterated a “neutral” rating and issued a $900.00 price objective on shares of Caterpillar in a research note on Tuesday, June 2nd. Jefferies Financial Group boosted their price objective on Caterpillar from $900.00 to $1,045.00 and gave the stock a “buy” rating in a research report on Friday, May 1st. Finally, HSBC upped their target price on shares of Caterpillar from $850.00 to $1,100.00 in a research note on Tuesday, May 5th. Fifteen analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $980.57.

Read Our Latest Research Report on Caterpillar

Key Stories Impacting Caterpillar Here are the key news stories impacting Caterpillar this week:

Positive Sentiment: Multiple analyst updates turned incrementally more optimistic on Caterpillar’s earnings outlook, with Erste Group Bank and Zacks Research lifting FY2026, FY2027, FY2028 and several quarterly EPS estimates. Higher profit expectations can support the stock by reinforcing the view that CAT’s long-term demand and pricing power remain solid. Positive Sentiment: Several commentary pieces highlighted Caterpillar as a leading industrial and equipment name versus peers like Volvo, citing stronger earnings momentum, rising estimates, and long-term growth tied to infrastructure, electrification, automation, and AI data-center buildout demand. Neutral Sentiment: Pre-earnings coverage noted Wall Street is expecting Caterpillar’s upcoming Q2 2026 report to show another double-digit profit increase, which keeps investor attention focused on whether results can justify the stock’s premium valuation. Neutral Sentiment: Several articles framed Caterpillar as a high-quality company with a strong brand and global dealer network, but also warned that the valuation looks rich. That limits near-term upside unless earnings growth continues to outpace expectations. Negative Sentiment: Caterpillar was also mentioned in broader market weakness and “AI selloff” coverage, and Zacks Research downgraded the stock from strong-buy to hold. That suggests some investors are becoming more cautious after the recent run-up. Caterpillar Profile (Free Report)

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

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Key Takeaways Construction Industries delivered $7.16B in Q1 2026 revenues, up 38% year over year.Caterpillar targets 1.25x Construction Industries sales to end users by 2030 vs. 2024. CAT is investing in autonomous equipment, AI-enabled solutions and digital services. Caterpillar Inc.’s (CAT - Free Report) Construction Industries segment generated around $25.1 billion in 2025 sales, accounting for roughly 37% of its total revenues. Its momentum accelerated in the first quarter of 2026, when revenues climbed 38% year over year to $7.16 billion, driven by higher sales volumes and favorable pricing. The segment contributed roughly 41% to the company's total revenues during the quarter.

The company views the segment as its backbone, reflecting more than a century of expertise in construction equipment. While machinery sales continue to drive growth, Caterpillar is increasingly expanding the segment's value proposition through rental offerings, digital capabilities and advanced technology solutions. This strategy aims to generate stronger customer engagement and create recurring revenue opportunities beyond the initial equipment sale.

The segment supports customers using machinery in infrastructure and building construction activities. The segment’s revenues have witnessed a CAGR of 8.2% over 2020-2025 and it serves more than 700,000 customers across more than 190 countries.

Looking ahead, Caterpillar has set a goal of increasing Construction Industries' sales to end users by 1.25 times by 2030 compared with 2024 levels. The company expects more than a 25% increase in global construction spend over 2024-2034.

Caterpillar continues to see attractive opportunities in both mature markets such as North America, Europe, Japan, Australia and New Zealand, as well as faster-growing regions across Asia (excluding Japan), Latin America, the Middle East, Africa and Eurasia. This balanced geographic footprint allows the company to capitalize on replacement demand in developed markets while benefiting from rising infrastructure investment and urbanization in emerging economies.

Caterpillar’s competitive advantages extend well beyond its product portfolio. Its extensive dealer network, connected equipment base and expanding digital ecosystem enable customers to improve machine utilization, lower operating costs and enhance productivity. The company is investing in autonomous equipment, AI-enabled jobsite solutions, machine automation and operator assistance technologies that improve efficiency and safety. These capabilities should become increasingly valuable as contractors face skilled labor shortages, rising project complexity and pressure to improve productivity.

Overall, the Construction Industries segment appears well-positioned for sustained growth, supported by global infrastructure spending, increasing equipment replacement demand, expanding digital services, autonomous technologies and a growing installed machine base. Although construction equipment demand remains cyclical and can be affected by interest rates and economic slowdowns, Caterpillar's diversified end markets, extensive dealer network, recurring services revenues and technology investments should help the segment deliver resilient performance over the long term.

Its peer, Komatsu Ltd. (KMTUY - Free Report) , is pursuing a similar strategy centered on automation, smart construction and electrification. Komatsu continues to expand its Smart Construction platform, autonomous equipment portfolio and digital services while benefiting from global infrastructure spending and mining investments. Like Caterpillar, the company expects software-enabled solutions and connected equipment to become increasingly important revenue contributors beyond traditional machinery sales.

Another close competitor is Deere & Company (DE - Free Report) , whose Construction & Forestry segment is emphasizing precision construction technologies, machine guidance systems and autonomous capabilities. Deere is investing heavily in digital workflows that improve jobsite efficiency, while also expanding aftermarket and technology-driven recurring revenues. Similar to Caterpillar, Deere views intelligent equipment, connected fleet and software integration as key long-term growth opportunities.

CAT’s Price Performance, Valuation & EstimatesCaterpillar shares have gained 49.6% in the past six months, outperforming the manufacturing - construction and mining industry's 42.2% growth.

Image Source: Zacks Investment Research

CAT is currently trading at a forward 12-month P/E of 34.03X, a premium compared with the industry’s 31.91X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 points to year-over-year earnings growth of 29.6%, while the 2027 estimate implies a growth of around 25%. 

Image Source: Zacks Investment Research

Earnings estimates for both years have moved up over the past 60 days. 

Image Source: Zacks Investment Research

Caterpillar stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

 Near-real-time spatial data and AI capabilities strengthen mine planning and execution

, /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) has acquired Skycatch, Inc. (Skycatch), a leading provider of spatial data capture, processing and analysis solutions for the mining industry, further enhancing its capabilities following the recent acquisition of RPMGlobal (RPM). The acquisition expands Caterpillar's portfolio of data-driven mining technology solutions that help customers optimize material movement.

Caterpillar is expanding its portfolio of data-driven mining technology with the acquisition of Skycatch. "Acquiring Skycatch aligns with our strategy to solve our customers' toughest challenges," said Denise Johnson, group president, Caterpillar Resource Industries. "By integrating near-real-time, high-resolution spatial data into both RPM and MineStar solutions, we can help customers improve mine site performance by enhancing safety, productivity and predictability across their operations using both staffed and autonomous fleets."

Skycatch's technology captures high-frequency, high-precision, large-scale spatial data and pairs it with a suite of AI capabilities that identify, measure and interact with the data to deliver improved operational performance. This gives mining customers a more up-to-date view of their operations, improving the speed, accuracy and precision of decision-making.

"Skycatch's ability to process large volumes of spatial data at dramatically improved speeds opens up a fundamentally different way of operating," said Richard Mathews, CEO of RPMGlobal. "With a near real-time spatial view of the operation, miners can adjust plans as conditions change, improve alignment between planning and execution, and deliver more predictable outcomes."

By generating a near-real-time digital twin of the mining site and integrating it directly into existing software solutions, customers can incorporate accurate, current data into their planning and execution workflows. The result is improved decision-making, reduced delays and greater confidence in daily operations. 

"We're incredibly proud of what Skycatch has built over the past decade and excited for this next chapter with Caterpillar," said Christian Sanz, Skycatch Founder & CEO. "This next step strengthens our ability to support our customers while increasing the value we can deliver."

About Caterpillar
For more than a century, Caterpillar has built a better, more sustainable world. With 2025 sales and revenues of $67.6 billion, Caterpillar Inc. is shaping the future as the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Backed by one of the largest independent global dealer networks and financing services through Cat Financial, the company's primary business segments: Power & Energy, Construction Industries and Resource Industries are solving customers' toughest challenges through commercial excellence and advanced technology, driven by a highly skilled, dedicated global team. Learn more at www.caterpillar.com. 

About RPMGlobal 
RPMGlobal [RPM®] is a global leader in the provision and development of mining software solutions to the mining industry. RPM has been advancing the global mining industry through the provision of innovative software solutions and deep domain expertise for almost 50 years. The company's innovative technology solutions support mining clients to extract more value at every stage of the mining lifecycle. In partnership with the industry, RPM has delivered safer, cleaner and more efficient operations in over 125 countries. Learn more at www.rpmglobal.com. 

About Skycatch 
Skycatch is a provider of spatial data capture, processing and analytics solutions for mining and industrial operations. The company's technology enables the rapid generation of high-precision 3D data and insights, supporting more accurate, timely and data-driven decision-making across site operations. Skycatch's solutions are used by global customers to improve visibility, consistency and efficiency in complex operating environments. Learn more at www.skycatch.com. 

SOURCE Caterpillar Inc.

Michael Burry said Tuesday he has placed a bearish wager against Caterpillar, believing the construction-equipment maker has become one of the market's most overvalued beneficiaries of the artificial intelligence investment boom.

The famed investor said he shorted Caterpillar shares at $1,060.98, alongside new bearish positions in Nvidia, Applied Materials, Tesla and the iShares Semiconductor ETF (SOXX), as he prepared for what he believes is an increasingly overextended rally in AI-linked stocks.

"Caterpillar jumped out at me," Burry wrote in a Tuesday SubStack post. "I have never shorted Caterpillar. It has always done great for me on the long side in the past."

Caterpillar shares just capped off the first half of 2026 with an 86% gain, making the construction equipment giant one of the best-performing stocks in the S&P 500 this year as investors increasingly embraced it as a proxy for the global AI infrastructure buildout.

Caterpillar year to date

Burry said Caterpillar's stock valuation has reached levels that caught his attention. He shared a chart showing Caterpillar's price-to-sales ratio climbing to the highest level in at least three decades at the same time as the stock surged to record highs.

The investor, who famously predicted and profited from the subprime mortgage crisis in 2008, also reiterated his broader concerns about semiconductor valuations. He said the Philadelphia Semiconductor Index is trading about 65% above its 200-day moving average, a level he said was only reached previously during the dot-com bubble in 2000.

"The proximate cause of today's rally is big spending announced out of Korea. Well, I see that as the beginning of the end," Burry said. "It is only a matter of time now."

© Scott Olson / Getty Images

Caterpillar (NYSE: CAT | CAT Price Prediction) has been one of the more surprising mega-cap winners of 2026, riding a record backlog, AI-driven power generation demand, and aggressive capital returns to fresh highs. With the stock now changing hands above $1,038, the question is whether the next leg requires fresh fundamental fuel or a pause.

Our 24/7 Wall St. price target for Caterpillar is $1,061.82, implying modest 2.28% upside over the next 12 months. We rate the stock a hold with high confidence (90%). The fundamentals remain excellent, but the valuation has caught up.

24/7 Wall St. Price Target Summary Metric Value Current Price $1,038.19 24/7 Wall St. Price Target $1,061.82 Upside 2.28% Recommendation HOLD Confidence Level 90% A Power Generation Story Built on a Construction Base Caterpillar shares are up 74.34% year to date and 169.49% over the past year, with a 13.02% gain in the past month alone. CAT now trades just 7% off its 52-week high of $1,023.29, a remarkable run from last summer’s low of $369.05.

The Q1 2026 earnings report on April 30 sealed the rally. EPS came in at $5.54 against a $4.64 consensus, while revenue of $17.41 billion grew 22.22% year over year. Construction Industries surged 38%, and Power Generation jumped 41% to $2.82 billion on data center demand for large reciprocating engines and turbines. CEO Joe Creed pointed to “a record backlog” as the foundation for continued momentum.

Why Bulls See a Breakout Above $1,113 The bull case rests on the AI infrastructure cycle. Power Generation has now grown 28%, 31%, 44%, and 41% across the last four quarters. PineBridge analysts argue data center equipment growth is “essentially locked in for the next four to five years” at roughly 25% annually given electrical infrastructure constraints.

Layer on a record backlog, Construction Industries expanding margins to 21.4%, and $5 billion of Q1 buybacks, and the bull scenario gets you to our $1,113.73 upside target.

The Risks Worth Watching The bear case is the price, the tariffs, and the multiple. CAT trades at a forward P/E of 41x, well above its historical range. Management guided full-year tariff impact of $1.30 to $1.50 billion, and Resource Industries segment profit fell 39% in Q1. Insiders are net sellers across 66 recent transactions.

The Street’s consensus target of $949.68 sits below the current price, and our bear case scenario implies $842.92, an 18.81% drawdown. Bulls would counter that margin compression reflects transitory tariff absorption rather than structural deterioration, and that the dealer inventory build supports a longer cycle.

Caterpillar Price Prediction 2026-2030 The 24/7 Wall St. price target of $1,061.82 earns a hold with 90% confidence. The business is excellent. The stock has simply priced in a lot of that excellence after a 169.49% one-year run.

A pullback toward the 200-day moving average near $673, or confirmation that tariff costs roll off into 2027, would reset the entry case. The setup weakens if Power Generation growth decelerates below 20% or if Resource Industries margins continue to compress.

Year 24/7 Wall St. Price Target 2026 $1,061.82 2027 $1,108.22 2028 $1,154.63 2029 $1,201.03 2030 $1,247.43 These projections assume Caterpillar continues converting its record backlog while tariff pressures normalize. Significant upside could come from accelerated data center capex, while a U.S. infrastructure slowdown or commodity downturn would test the floor.

The artificial intelligence boom has created enormous wealth for chipmakers and cloud computing giants.

Yet some of the stock market's biggest winners this year have been companies selling products that look more at home in industrial equipment catalogues than in Silicon Valley.

Shares of Caterpillar, GE Vernova, and Bloom Energy have posted returns rivalling many technology leaders in 2026, as investors increasingly focus on one of the biggest constraints facing artificial intelligence development.

The rapid construction of AI data centers has created unprecedented demand for reliable, round-the-clock power at a time when electricity grids around the world are struggling to keep pace.

Investors increasingly see the AI infrastructure buildout as part of a broader industrial transformation.

"If we go back five years or so, the opportunity was we're building more roads, we're building more bridges, and infrastructure was stage one," Chris Semenuk, an investment partner at Tema ETFs, said on an episode of the "Other People's Money" podcast last week.

With that infrastructure now built, the focus is broadening out, he noted.

Semenuk pointed to "unprecedented" backlogs at companies like Caterpillar and GE Vernova as evidence of the "reindustrialization" theme.

Caterpillar, best known for its yellow construction equipment, crossed a major milestone on Monday as its shares traded above $1,000, making it one of only two stocks in the S&P 500 with a four-digit share price.

The stock has gained more than 70% this year.

The company reported first-quarter revenue of $17.4 billion, up 22% from a year earlier, while adjusted earnings per share of $5.54 comfortably topped Wall Street expectations of $4.64.

The surprise driver of that growth was not construction activity but demand for power equipment.

Caterpillar's Power & Energy division, now the company's largest and fastest-growing business, generated revenue of $7.03 billion during the quarter, rising 22% year-on-year.

Within that segment, power generation sales jumped 41% to $2.82 billion, largely driven by data center projects.

The company's total backlog reached a record $63 billion, up 79% from a year earlier, primarily due to AI-related infrastructure spending.

Caterpillar's power and energy segment "is becoming increasingly dominant as demand for its large reciprocating engines and turbines swells with data-center/AI capital spending," Gimme Credit analyst Carol Levenson wrote in a recent note to clients.

The division now contributes roughly 40% of Caterpillar's revenue, matching the contribution from its traditional construction business.

Semenuk believes the opportunity is still in its early stages and said Caterpillar could be generating at least $10 in quarterly earnings per share by 2029, nearly double its latest quarterly earnings.

Among industrial companies, GE Vernova is perhaps the purest play on AI-driven electricity demand.

Spun out of General Electric in April 2024, the company manufactures gas turbines, grid equipment, and wind turbines.

Its shares have risen 66% this year.

GE Vernova posted better-than-expected earnings in April and raised its full-year outlook, sending the stock sharply higher.

The company expects its backlog for power generation and electrification equipment and services to reach $200 billion by the end of 2027, roughly one year ahead of its previous target.

Demand is being fueled by the construction of AI data centers, which has triggered an electricity investment boom not seen since the post-World War II period.

In the first quarter alone, GE Vernova booked $2.4 billion in electrification equipment orders tied specifically to data centers, surpassing the total booked during all of 2025.

Wall Street expects the company to generate earnings per share of about $24 in 2027, compared with estimates near $18 only a year ago.

After the company's latest earnings, Jefferies analyst Julien Dumoulin-Smith raised his price target on the stock to $1,350 from $965 while maintaining a Buy rating, arguing that strong business conditions should persist through the end of the decade.

Baird analyst Ben Kallo was even more optimistic, increasing his target price to $1,400 from $1,008 and retaining an Outperform rating.

The most dramatic gains have come from Bloom Energy.

Shares of the fuel-cell maker have surged roughly 250% this year as hyperscale data center operators seek alternatives to constrained power grids.

Bloom manufactures solid oxide fuel cells capable of generating electricity directly at data center campuses without relying on utility infrastructure.

The company's appeal lies not only in the amount of electricity AI facilities need but also in how quickly they can be deployed.

Grid connections for large data centers can take years to secure, while Bloom's systems can be installed in months.

Bloom recently raised its 2026 adjusted earnings forecast to between $1.85 and $2.25 per share, up from a previous range of $1.33 to $1.48.

It also lifted its revenue guidance to between $3.4 billion and $3.8 billion, implying approximately 80% growth at the midpoint.

The company was named the sole power provider for Oracle's Project Jupiter AI campus in New Mexico, which is expected to draw as much as 2.45 gigawatts of electricity from Bloom's fuel cells.

Separately, Nebius Group signed a master agreement worth up to $2.6 billion.

Despite the rally, analysts remain cautious.

Bernstein analyst Sunaina Ocalan initiated coverage with a Market Perform rating and a $276 price target, implying a 25% downside from current levels.

Bernstein said Bloom's solid fuel technology is "increasingly relevant in a scenario where grid infrastructure can't keep up with expected load growth," but added that investors need more confidence in the company's path toward sustainable cash flow and expansion capacity.

For now, the AI boom is reshaping market leadership in unexpected ways, turning power equipment manufacturers into some of Wall Street's most sought-after stocks as electricity becomes one of artificial intelligence's most valuable resources.