Caterpillar Stock Is Up 100% in a Year. Here's the Data Center Math Behind the Rally.

Caterpillar's stock has surged 100% over the past year, driven by massive demand for its equipment and power systems needed to build AI data centers and chip factories. With a record $63 billion backlog, the company is well-positioned for future growth. However, current valuations appear stretched, with price-to-sales and price-to-earnings ratios more than double their five-year averages, suggesting the stock may be expensive for new investors despite strong fundamentals.