Meta and Other Hyperscalers Face Data Center Bottleneck, Boosting Caterpillar and Eaton

Industry
โดย The Motley Fool·Read original
Summary · why it matters

Meta and other large technology companies are racing to build massive AI data centers, creating a major bottleneck that is driving record backlogs for industrial stocks Caterpillar and Eaton. Caterpillar, which makes earth-moving equipment and on-site power generators, reported a record backlog of $63 billion in the first quarter of 2026, up 79% from a year earlier, with revenues up 22% and adjusted earnings up 30%. Eaton, which sells electrical infrastructure for power management, saw its Americas business backlog grow over 40% year over year driven by AI demand, with order growth expanding at a 60% clip. Both stocks trade at elevated valuations—Caterpillar at 45 times earnings and Eaton at 38 times—but the ongoing AI data center buildout could sustain their momentum.

Impact on stocks 4

Energy Transition & Power Demand▲ · 2 stocks
Caterpillar Inc
CAT
▲ PositiveDemandrelevance

Record backlog of $63B driven by AI data center demand, revenue up 22%, earnings up 30%.

Eaton Corporation PLC
ETN
▲ PositiveDemandrelevance

Americas business backlog grew over 40% YoY driven by AI demand, order growth at 60%.

Artificial Intelligence▲ · 2 stocks

Theme Impact 5

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