Shares of Cummins Inc. (NYSE: CMI) stock are up nearly 12% in August following the company’s second-quarter earnings report. The company delivered a beat on the top and bottom lines. The strong headline numbers would appear reassuring to investors concerned about Cummins’ durability in its primary business of supplying diesel and natural gas engines.
However, the main driver of Cummins' growth is, unsurprisingly, artificial intelligence (AI). Specifically, the company is becoming a supplier of power systems that are now essential to the rapid buildout of data centers.
