Melius Research Raises Cummins Inc. (CMI) from Hold to Buy, Share Price Reaches All-Time High

Cummins Inc. (NYSE:CMI) is one of the 20 Best Stocks to Buy and Hold for a Lifetime, delivering consistent revenue and dividend growth.

Melius Research raised Cummins Inc. (NYSE:CMI) from Hold to Buy on September 3, 2025, pointing to the demand for artificial intelligence (AI) as a major growth driver. With a $54.46 billion market valuation and $33.72 billion in yearly revenue, Cummins Inc. (NYSE:CMI)  is a multinational company that operates in the Engine, Distribution, Components, Power Systems, and Accelera areas.

Melius said that in the midst of the prolonged downturn in the truck market, operational enhancements, capacity expansion in large engines for generator sets, and a price of about 18 times profits were all appealing. After 55 consecutive years of dividend payments returning about 2%, Cummins Inc. (NYSE:CMI) shares reached an all-time high of $408.71 a week later, reflecting a 41% one-year total return and ongoing shareholder commitment. Analysts anticipate that continued operational efficiency and AI-driven infrastructure growth will boost sales and profits.

Diesel and natural gas-powered engines, drivetrain systems, and truck, trailer, and off-highway equipment are all supplied globally by Cummins Inc. (NYSE:CMI). It is one of the best stocks to buy.

While we acknowledge the potential of CMI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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