Caterpillar's stock jumps as AI drives demand for generators
Caterpillar just had a huge year—its stock soared 62% in 2025, thanks to booming demand for natural-gas generators that keep AI data centers running smoothly.
With more data centers wanting their own reliable power (instead of depending on the grid), Caterpillar is stepping up big time.
Big investments and strong growth ahead
To meet this new demand, Caterpillar is putting $725 million into expanding its Lafayette, Indiana plant and aims to more than double turbine-engine production by 2030.
Its Energy & Transportation unit saw sales jump 17% last quarter, hitting $7.2 billion.
While competitors like Cummins are also getting in on the action, Caterpillar's focus on powering AI projects is helping it ride out ups and downs in construction—which analysts say could help set it up for steadier growth.