Caterpillar Stock Is Up 100% in a Year. Here's the Data Center Math Behind the Rally.
Caterpillar's stock has rocketed higher, but so has the outlook for the company's business.
Overview
Caterpillar (NYSE: CAT) is an industrial giant. You probably know its yellow construction equipment and iconic logo. It also makes generators capable of providing power in remote locations. The company's stock has risen more than 100% over the past year, easily besting the roughly 18% return of the S&P 500 index (SNPINDEX: ^GSPC). And artificial intelligence is a key source of Wall Street's enthusiasm. Here's what you need to know.
Worldwide spending on artificial intelligence could be as high as $2.59 trillion in 2026, according to Gartner Research. That figure would be up 47% year over year. That spending covers a lot of ground, including the construction of chip factories and AI data centers. You can't build massive facilities like these without the earth-moving equipment that Cat makes.
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Originally published at www.fool.com.