Caterpillar's Record-Setting Order Backlog Fuels AI Spending Boom

Caterpillar's stock surged after the company reported a strong second quarter earnings report. The construction equipment manufacturer posted adjusted earnings per share (EPS) of $8.17, a staggering 73% increase year-over-year. Revenue jumped more than 23% to $20.5 billion.

The real driver behind the stock's uptick was Caterpillar's massive order backlog. For the April-to-June quarter, the company booked orders worth $9.4 billion, taking its order backlog to a record-breaking $72.1 billion.

This news had a ripple effect on other companies that benefit from the AI boom, including Sandisk (SNDK) and Micron (MU), which saw their shares rally as well.