Caterpillar Inc. (NYSE: CAT) shares are trading higher during Friday's session as investors react to developments in the artificial intelligence infrastructure sector and expectations regarding Federal Reserve interest rates.
The stock is rising alongside other AI-related names, supported by reports that Broadcom Inc. plans to raise up to $60 billion in financing. This funding is reportedly intended to help customers, including Anthropic, purchase chips and computing infrastructure. Additionally, Samsung Electronics reportedly offered 2027 pricing for its next-generation HBM4 memory at more than three times the current HBM3E price, signaling tight supply and strong demand for memory used in AI accelerators.
Caterpillar is positioned to benefit from this demand through its Power Generation segment. The company is seeing rapid growth tied to data center applications, driven by major orders for natural-gas generator sets and turbines engineered for hyperscale campuses. This growth is reflected in the company's financial results, with the Power & Energy segment reporting a 17% year-over-year surge in sales during the second quarter.
At the time of publication, Caterpillar shares were up 2.39% at $846.07.
