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Caterpillar Faces Multiple Friction as AI Power Demand Surges

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The Story

News Summary

  • Caterpillar faces institutional profit-taking despite blowout Q2 earnings and a record $72 billion order backlog.
  • While surging AI data center power demand drives retail equipment sales up 72%, its elevated multiple of 28 times earnings sparks valuation friction among money managers accustomed to historical levels near 16.
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