How 100‑year‑old Caterpillar went from making construction equipment to becoming an AI market darling

During the Gold Rush, legend had it that the best way to get rich wasn’t by panning for gold, but by selling “picks and shovels” to the miners. And there’s no better example of that strategy in action today than at Caterpillar. There, the maker of massive mining and earthmoving equipment and iconic yellow construction site gear is capitalizing on the AI boom and seeing record stock highs and solid revenue growth.

Shares of the company have climbed to record levels in recent weeks, pushing...