Cummins Sells the Power Solutions That Keep Data Centers Running. Does That Make the Stock a Buy?
Its shares have surged so far in 2026, and there could still be plenty of upside ahead.
Overview
Founded in 1919, Cummins (NYSE: CMI) was focused on a breakthrough technology at the time: diesel engines. Cummins still serves the automotive industry today, but it's found a new revenue opportunity in data centers thanks to artificial intelligence (AI).
In part due to that growing revenue source that has fueled more investor interest, Cummins shares have climbed some 42% in value over the past 12 months. In comparison, the S&P 500 is up a bit of over 18% in the same period. While AI power demand shows no signs of slowing, there's still more to consider about Cummins as a potential investment.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
Related Articles
- Renewable-energy mandates are actually bad for consumers. They’re not great for solar stocks, either.
- Now’s your chance to make money during the best bond market for yields in decades — if you get over Treasury jitters
- Josh Brown says Apple's stock chart just gave you a classic 'tell.' What it means