Caterpillar shares climb sharply on power demand from AI data facilities

Caterpillar’s stock surged about 62% in 2025 as demand for power systems linked to AI data centre projects increased, driving investor interest in its Energy & Transportation segment. The company is expanding production capacity, including significant investment in facilities to meet rising orders for natural-gas and backup power equipment.

Portfolio disclosures revealed that mutual funds maintained exposure to eight midcap stocks for four consecutive quarters, reflecting sustained institutional conviction. Several of these holdings delivered returns of up to eighty 5% over the past year. Managers appeared selective, favoring companies with earnings visibility and balance sheet strength, even as volatility persisted across broader midcap and smallcap segments during 2025.