Jul. 1 at 11:00 PM
$CAT
It honestly feels like CAT’s value premium is getting more and more tied to the AI capex cycle.
And yeah… this is one of those quiet re-rating stories that most people don’t notice until it’s already happening.
What I’m seeing:
valuation multiple increasingly linked to AI infrastructure spend expectations
even small signs of AI capex deceleration could trigger multiple compression
cyclicality risk coming back, just through an “AI lens” this time
similar setup starting to show up in names like
$STRL as well
It’s not really just about CAT in isolation.
It’s more like the market is slowly pricing “AI-linked industrial beta” as a theme.
If AI capex stays strong, the premium can hold.
But if it even slows a bit, these are usually the first names where de-rating shows up.
