Being primarily known for its heavy machinery, generators, and work boots, Caterpillar (NYSE: CAT) could easily be described as the least likely winner of the artificial intelligence (AI) boom, and yet, that is precisely the spot the company has taken.
Specifically, the firm’s energy division has become its fastest-growing business segment and reported strong results last year as the AI buildout has proven more power-hungry than existing capacity can fully feed. Indeed, Elon Musk’s xAI has been generating headlines for months for powering its data centers with diesel generators.
The overall setup has also turned CAT equity into a veritable growth stock. Caterpillar shares ended 2025 trading close to $573 and have rallied 41.16% to $808.67 since. Zooming further out reveals even more impressive performance, as 12 months ago, CAT was trading at $291.17 and soared 177.65% since.
Considering that Caterpillar stock rose $200 since 2026 started and has as much to rise to hit the psychologically important threshold, the equity appears to be promising a rise above $1,000 per share.
Technical analysis hints at CAT shares soaring above $1,000 in 2026
For its part, technical analysis (TA) appears to indicate that CAT has more room to grow and that its rally will continue.
The overall readings Finbold retrieved from TradingView on April 22 certainly paint the stock as either a ‘Buy’ or a ‘Strong Buy,’ depending on whether they are based on the last 24 hours, one week, or 30 days.
Simultaneously, moving averages (MA) remain fixed on ‘Strong Buy’ on the platform, though oscillators are just as stubborn in rating CAT stock as ‘Neutral,’ somewhat tempering the expectations that the firm can continue its rally at its recent pace.
Elsewhere, the relative strength index (RSI) based on the popular timeframes between 9 and 100 days remains consistently above 60, indicating there is a danger of a downward correction, at least in the short-term.
Wall Street sets Caterpillar stock price target for next 12 months
Indeed, it is perhaps for that reason that, having soared 41% year-to-date (YTD) and 177% in the last 12 months, Wall Street experts do not foresee Caterpillar stock soaring another 23% to cross above $1,000 in the foreseeable future.
While overall rated as a ‘Moderate Buy,’ CAT shares are, on average, expected to decline 3.81% to $769.94 in the coming 52 weeks, and even the most bullish price target – assigned on April 21 by Wells Fargo’s (NYSE: WFC) Jerry Revich – does not predict a surge above $960.
