Caterpillar(US:CAT) Zhi Tong Cai Jing·2025-12-20 03:43Core Viewpoint - Caterpillar Inc. (CAT.US), once dubbed the "AI darling" of the U.S. stock market, has recently faced significant setbacks, highlighting investor skepticism regarding the sustainability of the AI investment frenzy and the potential returns from massive investments in AI data centers [1][4]. Group 1: Company Performance - Caterpillar's stock price has experienced a notable decline, dropping 9.6% over the worst five-day period since April, making it the weakest component of the S&P 500 Machinery Index [1][6]. - Despite the recent downturn, Caterpillar's stock had risen approximately 60% year-to-date, driven by its involvement in the AI power supply chain, particularly through its gas turbine business [6][8]. - The company remains a key player in the construction and mining equipment sector, often viewed as a barometer for global economic health [6]. Group 2: Market Trends and Investor Sentiment - The broader market has seen a rotation away from AI-related stocks, with significant declines in companies like GE Vernova and Vertiv, which are also tied to AI data center infrastructure [7]. - Analysts express concerns that the current AI investment narrative may be nearing its peak, with skepticism growing about the long-term viability of returns from AI investments [5][8]. - High-profile investment firms are increasingly questioning the sustainability of the AI boom, likening it to the internet bubble, and are focusing on identifying the true beneficiaries of AI advancements [5][6].