Caterpillar Stock Pulled Lower After AI-Driven Rally -- WSJ

Dow Jones06-11

By Bob Tita

Investors may be having second thoughts about Caterpillar's part in the AI data center construction boom as a supplier of power generators.

The construction and mining equipment manufacturer's shares closed down 6.4% at $856.16. Wednesday, the sharpest drop among Dow Jones Industrial Average stocks.

For Caterpillar, it's the biggest drop in more than a year, when shares declined 5.78% on April 4, 2025. Shares are down four of the last five trading sessions and off since the start of June, according to Dow Jones Market Data.

Data center developers have been ordering hundreds of Caterpillar's diesel and natural gas turbine generators as backup power and primarily electricity sources for artificial-intelligence servers. Developers are turning to alternative sources of electricity as a proliferation of AI data centers overwhelms the nation's electric grid.

Investors have lumped Caterpillar into a basket of the AI-related high-flier stocks. Caterpillar has mostly been on an uninterrupted climb, rising nearly 50% since the start of the year.

But some analysts see Caterpillar's stock price as exceeding the company's ability to deliver consistently higher profits in the coming years from its power and energy unit and its other business lines.

"It's perhaps a bit ahead of its skis," Morningstar analyst George Maglares said about the share price.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

June 10, 2026 16:59 ET (20:59 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

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Wednesday, the sharpest drop among Dow Jones Industrial Average stocks. \n\n\n     For Caterpillar, it's the biggest drop in more than a year, when shares declined 5.78% on April 4, 2025. Shares are down four of the last five trading sessions and off since the start of June, according to Dow Jones Market Data. \n\n\n     Data center developers have been ordering hundreds of Caterpillar's diesel and natural gas turbine generators as backup power and primarily electricity sources for artificial-intelligence servers. Developers are turning to alternative sources of electricity as a proliferation of AI data centers overwhelms the nation's electric grid. \n\n\n     Investors have lumped Caterpillar into a basket of the AI-related high-flier stocks. Caterpillar has mostly been on an uninterrupted climb, rising nearly 50% since the start of the year. \n\n\n     But some analysts see Caterpillar's stock price as exceeding the company's ability to deliver consistently higher profits in the coming years from its power and energy unit and its other business lines. \n\n\n     \"It's perhaps a bit ahead of its skis,\" Morningstar analyst George Maglares said about the share price. \n\n\n       This item is part of a Wall Street Journal live coverage event. 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