Is CMI a good stock to buy? We came across a bullish thesis on Cummins Inc. on Jimmy’s Journal’s Substack by Jimmy Investor. In this article, we will summarize the bulls’ thesis on CMI. Cummins Inc.’s share was trading at $685.87 as of June 26th. CMI’s trailing and forward P/E were 35.63 and 23.98 respectively according to Yahoo Finance.
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Cummins Inc. offers various power solutions worldwide. CMI is increasingly being re-rated from a cyclical diesel engine manufacturer into a vertically integrated global power solutions platform, with its economics anchored by a high-margin aftermarket and accelerating exposure to AI-driven power demand.
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Underneath the headline truck cycle, Cummins has built a uniquely integrated structure spanning Engine, Components, Distribution, Power Systems, and Accelera, enabling multiple margin capture points across the same installed base while generating a long-duration parts and service annuity.
The Power Systems segment is emerging as a key AI infrastructure beneficiary, with data center demand driving higher utilization, larger genset sizing, and a step-change in margins as revenue grew 19% year over year and EBITDA margins reached nearly 30%. At the same time, the Engine and Components businesses benefit from tightening emissions standards, particularly EPA 2027, which increases aftertreatment content per truck and reinforces Cummins’ content-per-vehicle advantage.
The 2022 Meritor acquisition expanded Cummins into axles, brakes, and drivetrain systems, while the 2024 separation of Atmus sharpened focus on higher-return core businesses and improved portfolio clarity. Despite a reputational setback from the 2024 emissions settlement, the long-term investment case remains anchored by a 2.2 million engine installed base and a 15 to 25 year aftermarket revenue stream that materially smooths cyclicality.
Cummins has raised its long-term framework to $45–50 billion in revenue with a target 20% EBITDA margin by 2030, implying meaningful upside to earnings power if AI-driven power demand and microgrid adoption continue accelerating. Overall the company represents a structurally stronger compounder than historically priced today.
Previously, we covered a bullish thesis on Deere & Company (DE) by Best Anchor Stocks in May 2025, which highlighted strong margin resilience, EPS outperformance, ag-tech expansion, and buyback-driven compounding potential. DE’s stock price has appreciated by approximately 20.71% since our coverage. Jimmy Investor shares a similar view but emphasizes Cummins’ AI-driven power systems and data center demand re-rating.
Cummins Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 79 hedge fund portfolios held CMI at the end of the first quarter which was 67 in the previous quarter. While we acknowledge the risk and potential of CMI 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 CMI and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
