Caterpillar emerges as an AI power play on demand for turbines

Caterpillar (NYSE:CAT), best known for its construction and mining machines, has suddenly become a beneficiary of the artificial intelligence boom, Bloomberg News reported Thursday. As AI’s soaring electricity needs ripple through the economy, investors are betting on demand for Caterpillar’s lesser-known turbines, pushing the stock to record highs in September.

The rally underscores how Wall Street’s AI trade has broadened. After chipmakers and cloud firms, then utilities and data-center builders, investors are now eyeing industrial companies poised to profit from the infrastructure required to power AI.

Brian Sponheimer, a portfolio manager at Gamco Investors, said the market has been searching beyond the “Magnificent Seven” for overlooked winners in the digital economy, Bloomberg News reported.

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RSK: Not only has the data center boom helped CRE, its many tentacles have touched other sectors as well.