Caterpillar Crashes Through as Unlikely AI Trade Leader

Caterpillar has emerged as a dominant player in the AI trade, despite not being an obvious choice. The company's products are integral to the global infrastructure buildout, particularly in the construction of AI data centers.

The company's recent earnings report was positively Microsoft-esque, crushing analyst estimates and resulting in a 6% increase in shares. This brings Caterpillar's year-to-date stock gain to 53%, with some analysts predicting a 14% upside from Tuesday's close.

Caterpillar's long-running market dominance has seen it become the best performer in the Dow since the start of 2025, posting a 142% surge over the period. However, its AI-trade bonafides have only recently been proven, with shares selling off alongside chipmakers during this summer's pullback.