Caterpillar shares surge 7.14% after-hours on AI-driven data center demand and record $51B backlog.

Caterpillar Inc. (CAT) surged 7.14% in after-hours trading following a record $51.2 billion backlog, strong Q4 earnings that exceeded estimates, and growing demand for its power generation solutions tied to AI-driven data center expansion. The stock hit an all-time high of $723.32 during regular hours, reflecting optimism around its strategic pivot to AI infrastructure and recent upgrades from analysts, including Jefferies raising its price target to $750. CEO commentary highlighted increased demand for generators supporting data centers, aligning with bullish sentiment from investors and analysts. The move coincided with broader market gains as the Dow crossed 50,000, but Caterpillar’s performance was primarily driven by its operational strength and positioning in the AI supply chain.