Caterpillar (NYSE: CAT) Now Makes Up 11% of the Dow. Could a Stock Split Come Before Year-End?
Caterpillar is capitalizing on the artificial intelligence (AI) boom.
Overview
Caterpillar (NYSE: CAT) is up 265% in the last three years, largely thanks to the artificial intelligence (AI) boom. Its earth-moving equipment is being used for AI data center construction. Caterpillar also has a massive mining business that is benefiting from resource demand.
Perhaps most importantly, Caterpillar's Power & Energy segment is perfectly positioned to capitalize on surging power generation demand as AI data centers look to go behind the meter by producing their own electricity and avoid lengthy interconnection delays associated with grid power. With the AI energy bottleneck intensifying and hyperscalers continuing to pour record capital expenditures into AI, demand for Caterpillar's products should continue to outpace supply for the foreseeable future.
Details
Now, with Caterpillar's stock price knocking on the door of $1,000 per share, some investors may be wondering if the industrial giant could issue a stock split -- especially with Caterpillar now making up a staggering 10.6% of the Dow Jones Industrial Average.
Source
Originally published at www.fool.com.