Caterpillar's Power Generation Backlog Just Hit $72 Billion. The Construction Cycle Barely Matters Anymore.

Michael Burry disclosed short positions in Nvidia (NVDA) at $198.09, Applied Materials (AMAT) at $729.40, and the iShares Semiconductor ETF (SOXX) at $642.80, citing overvaluation in semiconductor and AI-related stocks. Burry believes the sector's rally is nearing its peak, comparing it to the 2000 dot-com bubble, and noted that South Korea's chip spending may signal the end of the cycle.

Caterpillar (CAT), Eaton (ETN), and Vertiv (VRT) are industrial companies benefiting from AI-driven data center demand. CAT reported $20.5B Q2 revenue, ETN $8.53B, and VRT $3.27B, with respective stock gains of 91%, 13%, and 115% over the past year. These companies provide power and cooling solutions crucial for AI infrastructure, positioning them as key players in the AI expansion.

Caterpillar (CAT) shares fell 9.1% since its last earnings report, despite Q2 2026 earnings of $8.17 per share, beating estimates by 30.72%. Revenue rose 24% to $20.5B, with record backlog at $72B. Margins expanded, and the company expects mid-to-high teens sales growth for 2026. Analysts have revised estimates upward, with a Zacks Rank #2 (Buy).

Caterpillar Inc. (CAT), a mega-cap manufacturer of construction and mining equipment, has seen its stock fall 25.9% from its 52-week high but has gained 82.8% over the past year, outperforming the Dow. Q2 2026 earnings beat expectations with $20.5B revenue and $8.17 adjusted EPS. Analysts have a 'Moderate Buy' consensus with a $1,009.86 mean price target.

Jim Cramer reclassified Caterpillar (CAT) as a data center stock due to its 29% Power Generation revenue growth, driven by AI infrastructure demand. CAT's shares surged 90% over the past year. Cramer suggested replacing CAT with TJX (TJX) and Wells Fargo (WFC) for diversification. Generac (GNRC) and Micron (MU) also saw gains from AI-related demand. CAT reported $20.54B in Q2 2026 revenue, up 24% YoY, with a forward P/E of 32.

Fed Chair Warsh rejected the Phillips curve, attributing inflation to fiscal deficits and money creation. NVIDIA (NVDA) reported $96B revenue, CAT (CAT) hit $20.5B quarterly sales. JPMorgan (JPM) posted 23% ROTCE. Warsh's stance may reduce rate volatility, benefiting growth stocks, industrials, and banks.