Shares of Caterpillar dropped 4% following weekend warnings from AI leaders about slowing AI model improvements, which sparked selling in AI infrastructure-linked stocks. Caterpillar's power generation business, tied to AI data center construction, saw strong demand with a 72% sales increase in Q2 2026 and a $72 billion backlog, but the stock's decline reflects a momentum unwind rather than a drop in orders. Deere, which lacks AI data center exposure, rose 1% on strong earnings and raised guidance. Investors should watch Caterpillar's next quarterly update for confirmation of its robust order book extending into 2029 and 2030, as the recent selloff may be a short-term reaction to shifting AI narratives rather than a fundamental change.
Shares of Deere and Caterpillar have surged over 40% year-to-date, far outperforming the broader industrial sector, which is up about 12%. This sharp rise is unique to these two companies, not driven by a general industrial rally. Investors face a ch...
Five Dividend Aristocrats—Caterpillar, Emerson Electric, AspenTech, Honeywell Technologies, NextEra Energy, and Realty Income—are leveraging artificial intelligence to boost growth and maintain reliable dividends. These companies, known for raising d...
Caterpillar reported its biggest quarter ever in Q2 2026, with revenue surpassing $20 billion and net income up nearly 65% year over year, fueled by strong demand for AI data center infrastructure. The company's backlog grew to $72 billion, with orde...
