Motley Fool Backs Caterpillar, Vertiv for AI Boom as Data-Center Spending Surges
Updated
Updated · The Motley Fool · Jun 20
Motley Fool Backs Caterpillar, Vertiv for AI Boom as Data-Center Spending Surges
3 articles · Updated · The Motley Fool · Jun 20
Summary
Caterpillar and Vertiv were highlighted as industrial beneficiaries of AI infrastructure spending, with both tied to the power and cooling systems needed for new and upgraded data centers.
Caterpillar’s case rests on power generation: its power and energy division rose 21% to $7 billion in the latest quarter, helping lift total revenue 22% to $17.4 billion.
Management also raised its 2030 outlook for power-generation product sales to triple 2024 levels, up from a prior forecast of doubling.
Vertiv is benefiting from demand for liquid cooling, critical power and retrofit work; first-quarter net sales climbed 30% to $2.65 billion while free cash flow jumped 147% to $653 million.
That momentum has fed higher guidance again, with Vertiv now projecting 2026 revenue of $13.5 billion to $14 billion and adjusted EPS of $6.30 to $6.40.
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2026 AI Data Center CapEx Hits $750B: Caterpillar and Vertiv at the Heart of Global Infrastructure Expansion
Overview
The surge in AI data center infrastructure is driving rapid growth across industrial sectors, with companies like Caterpillar Inc. playing a key role as major providers of backup power systems. As digital services and AI workloads expand, the need for reliable and uninterrupted power supply has become critical, fueling demand for essential infrastructure. While Caterpillar has achieved record sales, the industry faces ongoing questions about sustaining demand and effectively scaling capacity. This dynamic environment highlights both the opportunities and challenges for market leaders as they navigate the evolving landscape of AI-driven digital infrastructure.