Wall Street’s AI boom has produced some eye-popping winners over the past two years, but one of its most surprising may not be a chipmaker at all. It is Caterpillar Inc. (NYSE:CAT). Known for its bulldozers, excavators and heavy construction equipment, Caterpillar now trades at a richer earnings valuation than Nvidia Corp. (NASDAQ:NVDA), the company that has become synonymous with the AI revolution.
Caterpillar trades at roughly 53 times trailing earnings, compared with Nvidia’s 31 times, per Benzinga Pro data. On a forward basis, Caterpillar changes hands at more than 44 times earnings, nearly double Nvidia’s forward multiple of about 23 times. The industrial giant also commands a higher EV-to-EBITDA multiple than the AI chip leader.
