Buy and Hold Caterpillar Poised to Gain Further on AI Data Center Boom

Caterpillar Inc. is benefiting significantly from the AI data center boom, with a record $72 billion backlog (up 92% YoY) and strong demand for reciprocating engines and power generation equipment. The company plans to nearly triple engine capacity and more than triple Power Generation sales by 2030. Management expects mid-to-high teens revenue growth for 2026 with improved margins, while analyst price targets suggest 29.6% upside potential.