Caterpillar Valuation Takes Hit as Data Center Doubts Mount

Caterpillar's stock has taken a hit after a Wall Street downgrade sparked concerns that the company's rally, driven by demand from the computing infrastructure boom, may have run ahead of its fundamentals.

The heavy-equipment maker has been trading like a tech stock in recent months, with investors betting on sustained demand for its excavators, generators, and power systems due to the surge in data center construction.

However, analysts are now questioning whether the aggressive spending plans announced across the industry will materialize as projected, leaving Caterpillar's valuation at risk.