Caterpillar (CAT) Is Playing a Key Role In the Data Center Industry, Says Jim Cramer

We recently published Jim Cramer Discussed These 12 Stocks & Wondered Whether He Should Melt Silver.  Caterpillar Inc. (NYSE:CAT) is one of the stocks that Jim Cramer discussed.

Construction and agricultural equipment provider Caterpillar Inc. (NYSE:CAT)’s shares are up by 85% over the past year and by 12.5% year-to-date. Jefferies bumped the firm’s share price target to $750 from $700 and kept a Buy rating on the shares in January. The financial firm pointed out that Caterpillar Inc. (NYSE:CAT)’s upcoming earnings report could see stable performance. The results saw the machinery manufacturer report $19.1 billion in revenue and $5.16 in profit per share to beat analyst estimates of $17.86 billion and $4.68. In his previous remarks about Caterpillar Inc. (NYSE:CAT), Cramer has repeatedly pointed to the firm’s potential to benefit from an uptick in AI data center construction. To wit, the latest earnings results saw the firm’s CEO point out that demand for products such as power generators was growing due to data center use. The demand for the power generation products was also on Cramer’s mind when he briefly mentioned Caterpillar Inc. (NYSE:CAT):

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“Joe Creed’s the CEO but my hat’s off to the most really humble of CEOs, Jim Umpleby, who steered this company away from China, made it into a secular grower. And this is when you want to know how to make sure your data center doesn’t go down, you hire CAT.”

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Disclosure: None. This article is originally published at Insider Monkey.