Caterpillar shares fell 5% to $760.64 in afternoon trading, extending a 7% decline over the past month, while Deere rose 2% to $642.72 and PACCAR slipped 1%. Caterpillar's Power and Energy segment, which supplies on-site electricity for data centers, grew sales 17% to $8.24 billion in Q2 2026, and total backlog reached $72 billion, with some customers booking as far out as 2030. The article argues Deere and PACCAR sit outside the AI infrastructure trade, and both stocks fell sharply last week as long-dated Treasury yields rose, raising borrowing costs for equipment buyers. Caterpillar expects about $600 million in Q3 2026 tariff costs, and the stock is well below its 52-week high of $1,071.47. The company reports third-quarter results in early next month, on a date not yet confirmed, and investors will watch whether Power and Energy sales keep growing fast enough to defend the valuation.
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