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Explain this story: Can Caterpillar (CAT) Keep Growing as Construction Slows? AI May Hold the Key
Caterpillar (CAT) has seen its stock surge by 37% year-to-date, largely due to strong earnings and its expanding data-center power generation business, leading to a premium valuation. While construction remains a core segment, the company's diversification into power generation for AI data centers is a significant growth driver, bolstering its backlog. However, its high valuation, potential normalization in construction spending, and tariff risks pose challenges for future growth.
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Caterpillar (CAT) has seen its stock surge by 37% year-to-date, largely due to strong earnings and its expanding data-center power generation business, leading to a premium valuation. While construction remains a core segment, the company's diversification into power generation for AI data centers is a significant growth driver, bolstering its backlog. However, its high valuation, potential normalization in construction spending, and tariff risks pose challenges for future growth.
Article tone: Positive This describes the words the journalist used. It is not a prediction, and not advice.
Also mentioned:NVDA
Published Sep 26, 2026, 00:12 ET · on this site +1d 1h