Caterpillar Surges on Unexpected AI Connection

Caterpillar stock surged as much as 11% after posting record quarterly revenue of US$20.5 billion, up 24% from a year ago and exceeding analyst expectations.

The surprise driver behind this growth is AI demand: power equipment for data centres has become one of Caterpillar's largest and fastest-growing segments.

As the company's Power & Energy division builds large engines, generators, and turbines that supply electricity to these massive warehouses of computers, it has quietly turned into an AI infrastructure play.