Caterpillar Sees AI-Driven Boom Boosting Revenue Growth Forecast

Caterpillar, an equipment giant, raised its annual revenue growth forecast after beating second-quarter profit estimates. The company's AI data center buildout has spurred demand for its power-generation and construction equipment.

The stock jumped by as much as 12% in early trading and was last up around 7%, on track for its best day in more than three months if gains hold. Caterpillar's stock rise also contributed to a 1.8% increase in the Dow Jones industrial index.

Caterpillar's core construction segment revenue grew by 35% in the quarter, driven by strong retail sales in North America, where it recorded a 50% jump.