The accelerating hype behind artificial intelligence (AI) is perhaps matched only by the rapid growth in demand for the computing power and electricity required to run it all.
The need for energy storage and electricity for AI data centers is expanding so rapidly that local power grids are having difficulties keeping pace
That creates opportunity. Two companies that investors might not expect are capitalizing — and they offset some risk by having significant dividends: Caterpillar (NYSE: CAT) and Ford Motor Company (NYSE: F). An AI play overlooked for decades While most investors associate Caterpillar with construction and mining machinery, management sees a lucrative technology opportunity developing with AI: its potential to generate a new revenue stream at higher margins than its traditional business.
The company sells enormous engines, turbines, and generator sets that AI data centers use for both primary and continuous backup power, giving it a faster-growing revenue stream. As you can see in the graphic below, Wall Street has taken notice, and the stock has soared over the past year. If you missed out on the one-year surge in Caterpillar shares, there is still growth to be had. “We think [this] is more of a 2027/2028 story than a 2025/2026 story,” Citigroup analyst Kyle Menges says, according to Barron’s.