Caterpillar shares down after AI-fueled run-up
CAT•Caterpillar shares fell 2% for a fourth consecutive session, leaving them nearly a third below their all-time high in late June. Its stock is up 27.4% year to date as demand for its power generation, backup power and construction equipment has benefited from U.S. data center construction.
1. Shares extend decline
Caterpillar shares fell 2% and were down for a fourth consecutive session, nearly a third below their all-time high in late June. The stock was still up 27.4% year to date.
2. AI trade volatility
Brian Langenberg, founder of Langenberg & Co, said Caterpillar came under pressure after quantum computing and AI stocks faced heavy selling. Morgan Stanley analyst Angel Castillo said Caterpillar and other industrial stocks exposed to data centers have been tracking volatility in the broader AI trade.
3. Data center demand
Caterpillar’s businesses have benefited from rapid U.S. data center construction, which has boosted demand for its power generation, backup power and construction equipment. Shares of several other companies moved lower amid broader AI-linked volatility, including CoreWeave, whose shares fell more than 15% as debt and cash-flow concerns added to investor jitters over the AI boom.
