Industrial Stocks Collect Hundreds of Billions as Tech Giants Fuel AI Boom
The tech industry's AI boom is driving massive spending on data centers, but it's not just chipmakers and memory suppliers who are reaping the benefits. Industrial companies like Caterpillar, Eaton, and GE Vernova are quietly collecting checks worth hundreds of billions as they supply the heavy equipment, power generation, and electrical infrastructure needed to build these AI facilities.
Caterpillar, in particular, is seeing significant growth in its Power & Energy segment, which generated $8.2 billion in revenue in the second quarter, up 17% year over year. The company's direct exposure to construction and power generation gives it multiple avenues for growth, and investors are starting to take notice.
Eaton, another industrial equipment giant, reported record second-quarter revenue of $8.5 billion, with data center revenue growing 65%. The company's electrical backlog rose 43% year over year, and management raised full-year adjusted earnings-per-share guidance to a $13.50 midpoint.
GE Vernova, the energy-focused spinoff of General Electric, is also seeing significant growth in its Electrification business, with data center orders reaching over $5 billion year-to-date, more than double its 2025 total. The company raised full-year guidance across the board, including a 22% revenue increase and an 88% order boost.