Key Points
-
AI data centers require heavy equipment, power generation, and electrical infrastructure, not just GPUs.
-
Caterpillar, Eaton, and GE Vernova show momentum through growth, backlog, orders, and guidance.
-
Industrial beneficiaries may be overlooked versus chip stocks, but they’re essential to the build-out.
Amazon has increased its capital expenditures for AI initiatives to $220 billion by 2026, with Microsoft at $175 billion, Alphabet aiming for up to $205 billion, and Meta Platforms planning to invest $135 billion. These figures highlight the increasing demand for data center infrastructure, where companies like Caterpillar, Eaton, and GE Vernova play crucial roles.
Caterpillar reported a second-quarter revenue of $8.2 billion for its Power & Energy segment, representing a 17% increase year over year. Eaton achieved record revenue of $8.5 billion, with a 65% surge in data center-related revenue. GE Vernova reported data center orders exceeding $5 billion year-to-date, doubling expectations for 2025 and reflecting a broader trend in industrial growth linked to the AI boom.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
