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Caterpillar's Stock Soars 62% Amid AI Demand Surge

12/31/2025

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Story summary
  • Caterpillar Inc. saw its stock surge 62% in 2025 as demand for natural-gas generators powering AI data centers grew.
  • The company plans to invest $725 million to expand its Lafayette, Indiana plant.
  • Caterpillar aims to double turbine-engine production by 2030.
  • Analysts note generator demand remains strong, but sustainability concerns and risks such as tariffs and interest rates persist.