Meta has increased the planned capacity of a data center project to 5 gigawatts, a significant jump from the previously reported 2 gigawatts. The company made this adjustment by July 2026, citing strong demand for artificial intelligence computing power. This expansion is expected to drive growth across the related supply chain.
Caterpillar has seen its order backlog rise to $63 billion, representing a 79 percent increase compared to the same period last year. This surge indicates the company's critical role in constructing AI data centers and suggests potential future revenue growth. The machinery manufacturer provides equipment for construction, mining, and power generation.
Eaton has also experienced increased demand for its power management products. The company reported that its Americas business backlog grew by more than 40 percent year-over-year. Order growth within this segment expanded at a rate of 60 percent, reflecting the strong push from AI infrastructure projects.
Despite the positive demand trends, both Caterpillar and Eaton face valuation challenges. Caterpillar trades at a price-to-earnings ratio of 45 times, while Eaton's ratio stands at 38 times. These high multiples may deter value-focused investors, even as ongoing demand for AI data centers provides momentum for the companies.
Wall Street analysts have adjusted their outlooks for Caterpillar. Citi analyst Kyle Menges raised the price target on Caterpillar shares to $1,100 from $1,020, maintaining a Buy rating. Menges noted that improving demand in construction and truck markets is helping to balance macroeconomic uncertainty. Truist also raised its Caterpillar price target to $1,218 from $1,043, citing strong demand trends across the machinery sector.
