Caterpillar Stock Slips as AI-Driven Rally Fades

Caterpillar's stock is on track for its second straight weekly loss as investors reassess whether the industrial giant's AI-driven rally can withstand mounting concerns over valuation, tariffs, and execution risks.

The company's shares have fallen more than 11% in the past seven trading sessions after peaking near $1,064, slipping back to around $920.

While demand from AI-related projects remains strong, investors are increasingly focused on execution risks, margin pressure, and cash flow generation.

Caterpillar's biggest challenge now is delivering on its record $63 billion order backlog, which requires manufacturing large engines and power systems that take time, skilled workers, and a huge investment.