Caterpillar's strong fundamentals should eventually help its shares find support once investors agree on a new multiple. The stock is down 35% from its peak after a parabolic run; continued separation of gross profit from operating expenses would be welcome. x.com 

Michael Burry's short on Caterpillar looks mistaken given its $72B backlog, up 92% year over year. Per TrendSpider, Burry's biggest shorts now include Oracle, Palantir, Nebius, Nvidia, Micron, Caterpillar and CoreWeave. Shorting some of the purest AI plays in the biggest tech revolution in history to buy Adobe and Lululemon is astounding. x.com 

Caterpillar looks like a prime short because it trades on AI-style hype without earnings to match. Its quarter-on-quarter numbers aren't proving out: last quarter it earned less than last September, and revenue versus last year doesn't look great. The stock ran up hard even with rates at their peak and likely to stay there for a while. x.com  x.com  x.com 

Caterpillar is the company actually building the data centers, and its Q2 2026 results show it. Revenue rose 24% to $20.54B against a $19.3B estimate, adjusted EPS rose 73% to $8.17 versus $6.20 expected, and operating profit grew 50% to $4.3B. Power & Energy grew 17%, Construction Industries 35% and Resource Industries 20%. It is a stellar company and a good long-term retirement holding. x.com 

Caterpillar has a powerful tailwind from demand for power and energy, making it one of the best stocks to own right now. x.com 

Caterpillar's power-generation boom is at greater risk as lenders tighten financing for AI data-center construction. Per Reuters, project delays, power-access limits and political opposition are leading creditors to demand permits, signed leases, stronger guarantees and higher yields, even as AI-related debt issuance nears $500 billion in 2026. Even legitimate data-center projects may then be deferred or cancelled before they turn into Caterpillar generator and engine deliveries. x.com 

Caterpillar is pivoting from heavy machinery into recurring software and autonomous technology on top of record fundamentals. Q1 2026 revenue rose 22% to $17.4 billion and adjusted EPS 30%, backlog is a record $63 billion, and construction revenue jumped 38%. The July Skycatch acquisition adds 3D drone mapping to its autonomous fleet, and it raised the dividend 8% after $5 billion of Q1 buybacks. Options gamma and moving-average support point to a breakout while those levels hold. x.com 

Caterpillar is cheap here, with plenty of free cash flow to keep funding capex for the next few years, a historic $64 billion backlog and newly raised targets. It has the best chart among key industrials, and the sector is seeing strong inflows this week. Jefferies set a $1,045 target this morning, and JPMorgan sees $1,165. x.com 

Caterpillar has stretched too far on valuation relative to its main peers, especially Cummins. United Rentals, despite less direct exposure to data centers, is still catching up on multiples. x.com 

Caterpillar's dip below Wall Street's average price target is a rare opportunity after a massive second-quarter double beat. Adjusted EPS was $8.17 against a $5.71 estimate, and sales were $20.5 billion against $18.36 billion expected. x.com