Investors’ AI excitement has pushed the stock market to new highs, extending beyond Big Tech. Caterpillar reported a significant sales jump in power generation machinery, raising its stock by 11%. Demand is strong for infrastructure supporting AI data centers. Developers are constructing power generation assets due to the overstressed US power grid.

Meta plans to power its data center with natural gas turbines. Caterpillar’s reciprocating engines sales surged by 33% YoY, reflecting the demand for power generation. Caterpillar foresees increasing demand for power generation amid the AI expansion. Adjusted EPS of $4.95 and revenue of $17.6 billion exceeded analyst expectations.

Industrial companies like Honeywell benefit from the data center boom. The Industrials sector is up 18% this year, driven by AI. Honeywell’s demand from data centers led to an adjusted EPS of $2.82 and revenue of $10.4 billion, surpassing estimates. NextEra Energy also sees AI as a key demand driver in its third-quarter earnings.

The Energy sector is thriving due to Big Tech’s power needs. On-site natural gas power is revitalizing the oil and gas industry. NextEra Energy reported adjusted EPS of $1.13 and revenue of $7.9 billion. Caterpillar demonstrated hydrogen fuel cells for data center power, signing deals to design systems for data centers.

Read more at Yahoo Finance: America’s industrial giants are getting a boost from the AI build-out that remains in its ‘early stages’