Caterpillar (CAT)’s “Levered” To The Data Center, Says Jim Cramer

We recently published Jim Cramer Talked About These 14 Stocks & Discussed AI And Layoffs. Caterpillar Inc. (NYSE:CAT) is one of the stocks Jim Cramer recently discussed.

Like he did with Nucor, Cramer used Caterpillar Inc. (NYSE:CAT) as another example of a firm pivoting itself to benefit from the boom in AI data center construction. He discussed former CEO Jim Umpleby and Caterpillar Inc. (NYSE:CAT)’s different businesses:

“Now I think that, look I love this fellow, Joe Creed. But can we please give Jim Umpleby the credit here, the chairman who was CEO. Who decided to embark on a secular growth path. Get rid of the things that people were looking at all the time, that episodic China growth, the lever to housing. And he has levered the company to data center. How can you not? And it’s just, remember they have a great engine business too but the resource business great. I think this is an amazing story. David, this stock was at 69 when Goldman downgraded it. Many years ago because they said, you know what, we’re done. We’re done. This thing is just too, up and down.”

While we acknowledge the risk and potential of CAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CAT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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