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Caterpillar Stock Soars 62% Amid AI Power Demand

1/4/2026

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Story summary
  • Caterpillar Inc.'s stock surged 62% in 2025 as demand for natural-gas generators to power 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 say the shift toward power generation could stabilize revenue amid economic uncertainty.
  • Tariffs and high interest rates pose risks to Caterpillar's future performance.