ewsba.se
Caterpillar Inc. (NYSE:CAT) was among the stocks Jim Cramer highlighted, as he discussed the massive AI infrastructure buildout. Cramer highlighted how the company is benefiting from the data center build-out, as he commented:
I remember the days when our economy ran only on the consumer… However, with the arrival of data centers, no surprise to see that Caterpillars on the list of hottest stocks, up 10% today… It’s got a ton of business from the data center build-out. In a new twist, though, investors, actual investors, are putting together groups, buying and then going and buying, okay, get this, buying hundreds if not thousands, of engines, CAT engines.
They’re stringing them up… And they are taking the natural gas from the hills in West Virginia, pumping it through these actual Caterpillar engines and building their own power plants basically off the grid. And this is just driving a huge amount of business for CAT. I was always worried these guys might have too much inventory. After I heard that story, I worry they don’t have enough. And again, if the power grid has to get much bigger, that means a lot of construction for the utilities. Who do you think they’re going to call? That’s right, Caterpillar, and a huge number of workers. Again, strong for the economy.
Caterpillar Inc. (NYSE:CAT) provides heavy machinery, engines, turbines, and rail equipment. In addition, the company offers power systems, parts, and support that keep the equipment working.
While we acknowledge the potential of CAT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years
Disclosure: None. Follow Insider Monkey on Google News.