Caterpillar Stock Is Up 100% in a Year. Here's the Data Center Math Behind the Rally.

Caterpillar has doubled over the past year, fueled by surging demand for equipment and power systems tied to AI data center construction and semiconductor fabrication facilities. The company sits on a record $63 billion backlog, positioning CAT to capture continued infrastructure spending in the artificial intelligence supply chain.

The rally has pushed valuations into expensive territory. Caterpillar's price-to-sales and price-to-earnings ratios now trade at more than double their five-year averages, according to The Motley Fool. The equipment maker is benefiting from a multi-year build-out cycle as hyperscalers and chipmakers race to expand capacity, driving orders for excavators, generators, and industrial power systems.

The $63 billion backlog represents visibility into 2025 and beyond, but new money faces entry-point risk at current multiples. The stock has priced in significant future execution, leaving little room for supply chain delays or demand normalization.