Caterpillar (CAT)’s “Levered” To The Data Center, Says Jim Cramer

Group 1 - Jim Cramer highlighted Caterpillar Inc. (NYSE:CAT) as a company successfully pivoting towards the AI data center construction boom, crediting former CEO Jim Umpleby for this strategic shift [1] - Cramer emphasized that Caterpillar has moved away from reliance on episodic growth in China and housing, instead focusing on data centers and its strong engine and resource businesses [1] - The stock was previously downgraded by Goldman Sachs when it was at $69, indicating a volatile history, but Cramer believes the current strategy positions Caterpillar favorably for future growth [1] Group 2 - While acknowledging Caterpillar's potential, there is a belief that other AI stocks may offer higher returns with limited downside risk [1] - The article suggests that there are extremely cheap AI stocks that could benefit from Trump tariffs and onshoring, indicating a broader investment opportunity in the AI sector [1]