Caterpillar stock surge tops $300 billion valuation due to AI-linked demand

Caterpillar Inc. (CAT) stock surged on Tuesday as enthusiasm around artificial intelligence-related demand pushed the industrial heavyweight’s market value briefly above $300 billion for the first time.

The stock rose as much as 2.4% to an intraday high of $644.59. Gains eased late in the session, and shares closed up 1.1%, leaving the company valued at about $298 billion.

Caterpillar has emerged as a standout performer early this year. The stock is up 11% so far in 2026, following a 58% surge last year. That performance places it among the leaders in the S&P 500 Industrials Index.

Investors have focused on Caterpillar’s exposure to power-generation equipment, which is increasingly tied to the rapid buildout of data centers. These facilities require large and reliable sources of electricity to run servers that support artificial intelligence workloads.

Demand from data centers has helped support a record order backlog. Power generation has become the company’s fastest-growing business, with strong visibility into future sales as Caterpillar expands capacity to meet demand.

The company’s broad manufacturing footprint has also benefited from a solid economic backdrop. A report last month showing stronger-than-expected US growth encouraged investors to move into stocks that tend to rise with economic activity.

That shift has favored companies like Caterpillar, said Steve Sosnick, chief strategist at Interactive Brokers. He noted that buying in economically sensitive shares picked up momentum only recently, after a brief delay tied to portfolio managers’ holiday schedules.

Caterpillar’s advance has continued even as some peers paused. Shares have rebounded from a pullback late last year, outperforming names such as GE Vernova Inc. and Vertiv Holdings Co., reinforcing confidence that the Caterpillar stock surge could extend as cyclical markets improve.