Industrial Stocks Quietly Reap Billions from Big Tech's AI Boom
Big Tech's massive investment in AI data centers has set off a chain reaction that is benefiting three industrial companies. Amazon, Microsoft, Alphabet, and Meta Platforms are collectively planning to spend $735 billion on AI initiatives by 2026, with most of the funds going toward graphics processing units (GPUs), central processing units (CPUs), and other hardware.
However, these companies can't build or power their data centers without industrial infrastructure. Caterpillar, Eaton, and GE Vernova are quietly collecting checks as they supply equipment, power generation, and grid infrastructure to support the AI boom.
Caterpillar's Power & Energy segment delivered $8.2 billion in revenue in the second quarter, up 17% year over year, driven by demand for on-site and backup power generation for AI data centers. Eaton reported record second-quarter revenue of $8.5 billion, with Electrical Americas growing 18% organically to $4 billion, a segment record.
GE Vernova's Electrification orders topped $5 billion year-to-date, more than double its 2025 total, and the company raised full-year guidance across the board. Total revenue is expected to reach $45.5 to $46.5 billion, Electrification revenue to $14.5 to $15 billion, and free cash flow to $11.5 to $12.5 billion.