Caterpillar Secures 2.67 GW AI Power Deal as Stock Soars 172%
ALSN•Caterpillar’s shares have climbed roughly 172% over the past year, pushing its trailing P/E multiple to 52x and its 2026 estimate-based multiple to 43x on projected earnings of $24.60. Shares jumped over 6% after Caterpillar secured a 20-year, 2.67 gigawatt AI data-center power contract with Chevron to supply Microsoft facilities.
1. Historic Stock Re-rating
Over the past year Caterpillar’s shares surged approximately 172%, lifting its trailing P/E multiple to 52x and its forward multiple to 43x based on projected 2026 earnings of $24.60. This structural re-rating reflects accelerating demand for backup power solutions and an evolving perception of Caterpillar as a strategic AI infrastructure provider.
2. Landmark AI Data Center Power Contract
Caterpillar secured a 20-year agreement to supply 2.67 gigawatts of power for a co-located AI data center in West Texas, a project led by Chevron to serve Microsoft facilities. Under the deal, Solar Turbines will contribute additional generation capacity alongside large GE Vernova turbines, reinforcing Caterpillar’s role in critical AI infrastructure.
3. Revenue and Earnings Outlook
Revenues expanded from $59.4 billion in 2022 to $70.76 billion over the trailing twelve months, with forecasts of $76.2 billion in 2026, $84.2 billion in 2027 and $93.8 billion by 2028. This projected 23% two-year growth underpins consensus estimates of $30.11 earnings in 2027 and $35.50 in 2028, forming the basis for a potential $2,000 share price roadmap.
