Jim Cramer Shares Big Data Center Catalyst For Caterpillar (CAT)

We have recently shared Jim Cramer Made A Big Prediction About OpenAI & Discussed These 20 Stocks. Caterpillar Inc. (NYSE:CAT) is one of the stocks discussed by Jim Cramer.

Caterpillar Inc. (NYSE:CAT)’s shares have been under analyst focus as April comes to an end. On the 24th, Bank of America discussed the firm as it raised the share price target to $930 from $825 and kept a Buy rating on the stock. BofA remarked that Caterpillar Inc. (NYSE:CAT) could benefit from its Power & Energy business in its fiscal year 2027 and face pressure from tariff-induced costs. On the 20th, Truist had raised the share price target to $920 from $786 and kept a Buy rating on the stock. Truist’s coverage was part of its re-evaluation of the broader industrial machinery sector, as it remarked that the first-quarter earnings could be good. Cramer holds the same opinion about Caterpillar Inc. (NYSE:CAT):

“CAT I think is going to have an excellent quarter. But what people have to recognize, and they have good oil and gas. But what people have to recognize is that if you string thousands of Caterpillar engines together, and you tie em to say EQT, which I have tonight, don’t get on the grid. Then what you can do is, you can power a data center. Put enough together you got a gigawatt. People want gigawatts. This is a gigawatt play.”

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.

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