Jim Cramer just put a buy stamp on Caterpillar, and the most interesting reason is electrons, not bulldozers.
On the May 11 episode of Mad Money, a caller named Michael asked Cramer about Caterpillar’s upside, and Cramer rattled off three converging tailwinds
The freshest one: AI hyperscalers buying industrial-scale engines to power their data centers because the grid cannot keep up. The Cramer Thesis on Caterpillar Cramer’s framing on Caterpillar (NYSE:CAT) hit three secular trends in one ticker. On AI power, he said Caterpillar “got engines that line up and make you get to be able to have the electricity that you need to be able to hit the gigawatt numbers that all these, all these hyperscalers want.” On energy, “Caterpillar is oil and gas, and we’ve been pumping a lot more oil and gas.” On infrastructure, “Caterpillar’s construction and infrastructure, and we’ve been doing a lot of infrastructure.” His verdict: “That means that Caterpillar is a buy, good stock to end on.” Power Generation revenue jumped 41% to $2.817 billion in Q1 2026, on top of a 44% surge in Q4 2025.
Large reciprocating engines and turbines are the workhorses behind on-site data center power. Infrastructure and Oil Round Out the Trifecta Construction Industries posted $7.161 billion in revenue, up 38%, with segment margin expanding to 21.4%. Oil and Gas rose 13% to $1.423 billion, helped along by WTI crude trading at $109.76 per barrel, in the 97.9th percentile of the past year.