A $10.2 Billion Hidden AI Revenue Stream Most Investors Are Missing

12 hours ago 1

Jeremy Phillips

Tue, May 26, 2026 astatine 7:26 AM CDT 4 min read

Quick Read

Caterpillar (CAT) generated $10.2B successful information halfway generator income past year, representing implicit 10% of full revenue, with Power Generation gross hitting $2.817B successful Q1 2026 (up 41% year-over-year) arsenic CEO Joe Creed attributed 48% maturation to ample gensets and turbines for information halfway applications. The company’s backlog surged to a grounds $63B (up 79% year-over-year successful Q1), with ample reciprocating motor backlog up much than 3.5x since January 2024, prompting capableness enlargement to astir 3x 2024 levels.
AI information centers necessitate exponentially much powerfulness than the existent grid tin supply, and Caterpillar’s behind-the-meter state generators are filling the spread for hyperscalers connected the infrastructure timeline they really need.
The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Caterpillar wasn't 1 of them. Get them present FREE.

There's a enactment point sitting connected Caterpillar's financials that does not look similar an AI communicative astatine archetypal glance. According to Stephen Morris and Andrew Sather connected The Investing for Beginners Podcast, Caterpillar generated $10.2 cardinal successful income past twelvemonth from generators sold to information centers. That's the portion of the bull lawsuit I support coming backmost to.

For context, Caterpillar (NYSE:CAT) is inactive mentally filed by astir investors nether operation and mining equipment. When radical surface for AI "picks and shovels," they scope for spot designers, hyperscaler suppliers, oregon specialty HVAC names. The yellowish robust institution softly powering the buildout doesn't get the aforesaid billing.

The Hidden Revenue Stream

The podcast hosts pointed to a abstracted enactment point Morris described arsenic "energy slash something" connected the currency travel statement, tied straight to information halfway generator demand. Against full Caterpillar gross of $67.5 billion, they argued the information halfway generator tailwind represents implicit 10%, perchance 15%, of gross growth.

The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Caterpillar wasn't 1 of them. Get them present FREE.

The Q1 2026 study makes the inclination hard to ignore. Power Generation gross wrong the Energy & Transportation conception deed $2.817 billion, up 41% twelvemonth implicit year, with absorption attributing the maturation to "large reciprocating engines and turbines for information halfway applications." CEO Joe Creed told analysts connected the telephone that "Power procreation grew 48%, driven by beardown request for ample gensets and turbines utilized successful information halfway applications with an expanding premix towards premier power." You tin work the net grounds straight connected the SEC.

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