US manufacturing rebounds beyond AI, boosting Caterpillar shares toward $1,000 target.

US manufacturing production excluding high-tech sectors rose 2.4% annualized in Q1, signaling a broad industrial recovery beyond AI-related industries. This growth benefits companies like Caterpillar, which supplies heavy machinery to factories, mines, and construction sites. Caterpillar's stock surged 61% in 2025 and continues to gain in 2026, supported by strong order backlogs and expanding production capacity. With a current price of $768, Caterpillar is positioned to reach $1,000 if the manufacturing rebound sustains, though risks like tariffs and construction slowdowns remain.