NEW YORK, April 23, 2026, 13:26 EDT
Arm Holdings caught a bid Thursday, climbing 5.4%, while Caterpillar gained 4.2% by the afternoon. This came as investors looked past the regular megacap AI names, opting instead for stocks connected to the data-center buildout.
Market lists picked up the move. Zacks on Thursday called out Arm, Apple, Nvidia and Meta; Investors Business Daily slipped Arm into its IBD 50 late Wednesday; CNBC flagged an industrial name linked to the AI wave breaking out. Arm led the Zacks picks—Apple barely budged, while Nvidia and Meta slipped.
It’s significant, with managers now hunting for the next AI trade after Nvidia and a handful of platform stocks pulled most of the weight. Reuters said Thursday that investors are rotating into technology, industrials, materials, and data-center bets. The Energy Information Administration, for its part, projected record U.S. power demand in 2026 and 2027, as electricity use by AI and crypto data centers climbs.
Arm grabbed attention back in March after it rolled out the AGI CPU—its inaugural Arm-built data center chip and a debut foray into mass-produced silicon. The company is pitching the processor for “agentic AI” applications, those that handle tasks with minimal human input. Meta is not just a customer but also the lead partner and co-developer here. Chief Executive Rene Haas, according to Reuters, is targeting roughly $15 billion in yearly revenue from the AGI CPU in about five years. Arm Newsroom
Caterpillar offers a different flavor of AI exposure. Back in January, the company reported a 23% jump in fourth-quarter sales from its power and energy division. CEO Joe Creed pointed out that “prime power” system orders are climbing as data-center operators look for nonstop on-premises electricity. First-quarter earnings are due April 30. In a note this week, IBD highlighted that both Wells Fargo and Truist have bumped up their price targets, betting data-center demand sticks. Reuters
The effects are hitting other parts of the supply chain, too. On Wednesday, GE Vernova bumped up its 2026 revenue and margin targets after a pickup in data-center and grid orders, a sign that the AI push is fueling not just chipmakers but also power-equipment suppliers.
The bet comes with downsides. Caterpillar put out a warning: tariffs might hit it for around $2.6 billion in 2026. Jefferies’ Stephen Volkmann noted that even with sales picking up, margin pressure was already eating into the gains. Over at Arm, shares were trading at 63 times forward earnings by Reuters’ count last month—a lofty multiple for a company still finding its footing with a new business model.
Investors aren’t backing off yet. Michael Arone at State Street warns the larger threat might be “staying on the sidelines too long.” Shannon Saccocia from Neuberger Berman sees room for the rally to stretch past just the big tech giants. Thursday’s trading data hints that shift is starting. Reuters
