Caterpillar’s AI-Driven Metamorphosis Outshines Nvidia in 2025 Market Rally
Caterpillar's stock has emerged as the top performer in the Dow this year, surpassing tech giants like Nvidia and Microsoft. The industrial heavyweight, traditionally known for its construction equipment, is now being viewed through an AI lens as data center power demand fuels its energy segment growth.
Despite two consecutive earnings misses, Caterpillar shares have surged 45% year-to-date - outperforming both the S&P 500 and Nvidia. Morgan Stanley analysts caution the stock appears "priced for perfection" ahead of Wednesday's Q3 earnings report, where investors will scrutinize energy segment performance as construction business weakens.