Caterpillar's AI power segment grows fast, backlog hits $63B, signaling strong demand but growth timing uncertain.

Caterpillar is gaining attention as a key player in powering AI infrastructure, with its Power Generation segment growing 41% year-over-year in Q1, despite representing only 16.2% of total sales. The company reported a record $63 billion backlog, up 79% from last year, indicating strong demand. However, there is uncertainty whether the market is underestimating Caterpillar's growth potential or if converting this backlog into revenue will take longer than expected. The author remains bullish on Caterpillar but notes a preference for some peers in the sector.