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

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.