The article compares GE Vernova and Caterpillar in terms of their exposure to AI infrastructure spending. Analysts expect AI capital expenditures to reach $800 billion this year, and Goldman Sachs says hyperscaler investment could hit $1.7 trillion by 2027 and $2.1 trillion by 2029. GE Vernova has greater exposure to this trend, with strong demand for gas turbines and electrification equipment; its data center orders in electrification doubled to $5 billion in the first half of 2026, and its total backlog reached $176 billion. Caterpillar benefits from demand for backup power systems, with a $72 billion backlog, power-generation sales up 72% from last year, and gas turbine order backlogs stretching to 2030. Both stocks have been highly volatile: GE Vernova is up 596% and Caterpillar up 149% since the start of 2024, but they are 23% and 32% below their 52-week highs, respectively.
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