Caterpillar Stock Surges on Strong Demand for Data Center Equipment

Caterpillar, an industrial equipment giant, has raised its annual revenue growth forecast after beating second-quarter profit estimates. The company saw significant demand for its power-generation and construction equipment due to the buildout of AI data centers.

The stock price rose 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 jump also contributed to a 1.8% rise in the Dow Jones industrial index.

Over the last few quarters, the company has seen a surge in orders for construction equipment amid a nationwide buildout of data centers and backup power equipment needed for such buildings. Construction leading growth was a standout during this period, according to Oppenheimer analyst Kristen Owen.