Caterpillar Boosted by AI Data Center Demand

3 months ago

Lee Matteo

"All right, got to hit Caterpillar. Cat um up more than 10%. Higher third quarter revenue. The interesting thing is that it really got a boost from its energy and transportation business more so than the business that makes the heavy duty equipment for construction and mining. And that's because of rising demand for equipment that's needed to fuel AI data centers. So that division, their energy and transportation, they provide battery storage, backup generators for industries. It's been Caterpillar's fastest growing segment. So keep an eye on it. As far as tariffs, they did say they expect a record 650 million to $800 million in uh tariff costs in the fourth quarter."

Caterpillar is benefiting significantly from its energy and transportation segment, which is experiencing rapid growth driven by AI data center demand. While the stock is up over 10% and the segment is the fastest growing, upcoming tariff costs pose a potential headwind.

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