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We just covered Bill Gates’ 2026 Portfolio: Top 10 Stocks to Buy. Caterpillar (NYSE:CAT) ranks #5 (see the Bill Gates’ 2026 Portfolio: Top 5 Stocks to Buy).
Caterpillar (NYSE:CAT) isn’t just about heavy construction and equipment. It’s rapidly becoming an AI and data center play. Caterpillar (NYSE:CAT)’s large natural-gas generators business could thrive amid high demand as companies look for backup power for hyperscale computing campuses. Recent earnings showed power generation sales rising as much as 44% year over year amid orders tied to hyperscale and enterprise data center operators.
What about Caterpillar (NYSE:CAT)’s core business? It stands to benefit from rising infrastructure spending in the U.S. and globally. The Infrastructure Investment and Jobs Act authorizes about $1.2 trillion in funding, including roughly $550 billion in new investment across roads, bridges, rail, broadband, and power grid upgrades. Most of these projects require heavy machinery and engines.
Diamond Hill Large Cap Fund explained CAT data center growth and why the stock was a key contributor to their portfolio in their investor letter. (Click Here to Read The Letter In Detail)
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While we acknowledge the potential of CAT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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