Caterpillar (CAT) is higher today after the market’s focus swung back to the company’s power-generation and energy infrastructure exposure—particularly engines, turbines, and generator sets used in large-scale power projects tied to hyperscale AI data centers. The rally follows a string of recent target-price increases and upbeat industry commentary that has kept the “power demand re-rating” narrative front-and-center into late April.

The near-term driver appears to be positioning around the idea that data-center-related power demand can support a higher and more durable earnings profile than a traditional construction-cycle multiple would imply. Recent notes and industry writeups have highlighted expanded power-generation order activity and have pointed to multiple analyst price-target moves in recent weeks, keeping incremental buyers engaged after earlier pullbacks.

The next major checkpoint is Caterpillar’s first-quarter 2026 earnings, due April 23, 2026, when investors will look for confirmation that Power & Energy strength is translating into resilient margins and cash generation. Key swing factors include pricing and mix, services contribution, and any updated color on tariff-related cost pressure and whether it’s being offset by productivity or price realization.