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Caterpillar stock surges 60% in 2026 on AI-driven power boom, with buy rating and $984 price target.

Analyst Insights
15 Jun 2026
24/7 Wall Street
View Source
Bullish
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Caterpillar has gained nearly 60% in 2026, driven by strong Q1 results including a 22% revenue increase and a 41% surge in Power Generation revenue due to AI data center demand. The company raised its sales guidance and dividend, supported by a $63 billion backlog and aggressive buybacks. Analysts see potential for further upside to around $1,030 if AI infrastructure demand continues, though risks include high valuation, tariff costs, and supply chain issues. The stock is rated a buy with 90% confidence, reflecting optimism about its unique position in data center power equipment.

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