Caterpillar Inc. (CAT): “You’re Making A Lot Of Money” If You’re Involved In AI Build Out, Says Jim Cramer

We recently published 14 Stocks Jim Cramer Discussed As He Talked About Record Bitcoin Price. Caterpillar Inc. (NYSE:CAT) is one of the stocks Jim Cramer recently discussed.

Caterpillar Inc. (NYSE:CAT) is one of the largest agricultural and construction equipment providers in the world. Typically, this means that the stock’s performance is tied to the economy, with lower rates and more construction activity acting as tailwinds for the shares. However, Caterpillar Inc. (NYSE:CAT)’s shares are up 12.6% year-to-date as the firm has benefited from investor sentiment about data center construction. Cramer discussed Melius Research’s latest coverage of Caterpillar Inc. (NYSE:CAT):

“[On Melius upgrading the stock] Yeah and that’s Cummins, too. . .I do believe that if you are involved in the buildout, like we have a big decision in the charitable trust for Eaton, you’re making a lot of money because the buildout does not stop. And GE Vernova is still the biggest I think because you have to have nat gas. We’d love to have it all based on wind, well but not the President.”

“[On Melius pointing out that bubbles remain a worry] Well what are you going to do when you out one of those up, they really, they really like CAT. . . .look I think that the buildout, you can’t do what Amazon wants, and Alphabet wants, and, of course what Musk wants, what Zuckerberg wants, without more data centers. It’s just a, it’s remember, Jensen Huang, it says it’s an industrial revolution, and it would be like if you were doing steam engines and you said you know what we don’t need as many steam engines, I can predict.”

A construction crew operating a hydraulic shovel during a nighttime project.

Earlier, the CNBC TV host also discussed Baird’s discussion of the stock:

“I was going to do Caterpillar, Hold to Buy. That was a good piece. Baird had fought it every step of the way, the reason I didn’t do it is I didn’t want to make fun of the guy for being completely wrong.”

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