Zaman: Caterpillar is becoming an AI infrastructure supplier

Market Overview - The government shutdown has ended, and markets are at or near record highs, with the Dow reaching a record high [1] - There is an expectation of a market pullback of 10 to 15%, which is viewed as healthy for the market as it may improve breadth and change market leadership [2] Market Leadership Transition - A shift in market leadership is anticipated, moving from AI winners to AI enablers, which are companies that provide the necessary infrastructure for AI [3][4] - Current AI winners include companies like NVIDIA, Microsoft, and Alphabet, but the focus is shifting towards those enabling AI infrastructure [4] Caterpillar's Position - Caterpillar is highlighted as a key stock, having increased by 58% this year, and is transitioning from a traditional construction equipment company to an AI infrastructure supplier [5][6] - The demand for data centers is expected to triple by 2030, and Caterpillar is involved in both building and maintaining these data centers, contributing to its recent strong earnings [6][7] Broader Investment Opportunities - For broader exposure to the industrial sector, the Spider ETF (XLI) is recommended, as it includes companies investing in the AI ecosystem [8] - There is a concern regarding concentration risk, as over 35% of the S&P 500 is comprised of a few tech companies, which may lead to a market pullback [9]