AI, not tariffs, drives US manufacturing to a 4-year high, boosting stocks like Caterpillar and Vertiv.

US manufacturing activity has reached its highest level in nearly four years, driven primarily by artificial intelligence (AI) rather than trade policies like tariffs. The S&P Global US Manufacturing PMI rose to 54.0 in April, with production growth and new orders surging. Key sectors benefiting include fabricated metals, machinery, electronics, and electrical equipment. Major companies such as Caterpillar, Vertiv, Quanta Services, and Eaton are seeing strong stock performance and raised earnings forecasts due to increased AI-related demand and infrastructure investments. This trend signals a robust industrial demand outlook, supported by significant capital spending from tech giants on AI data centers and infrastructure projects.