Caterpillar's stock surged more than 170% over the past 12 months as the construction equipment manufacturer becomes a key supplier for AI data center infrastructure.

Caterpillar reported Q1 2025 revenue of $17.4 billion, a 22% increase from Q1 2024, and adjusted profit per share rose from $4.25 to $5.54 year over year. The company also holds a record backlog.

Amazon, Alphabet, and Microsoft rely on Caterpillar's excavation, land clearing, and facility-building equipment to meet their AI infrastructure requirements, representing billions in spending from these tech giants.

Caterpillar is positioned as a critical player in physical AI infrastructure build-out—the industrial foundation beneath semiconductors and cloud computing that hyperscalers depend on to construct data centers.