"Caterpillar (CAT)'s incredible," Says Jim Cramer

We recently published 10 Stocks Jim Cramer Talked About.  Caterpillar Inc. (NYSE:CAT) is one of the stocks on Jim Cramer talked about.

Heavy machinery manufacturer Caterpillar Inc. (NYSE:CAT) is a stock Jim Cramer consistently discussed throughout 2025. The CNBC TV host insisted that the firm had exposure to AI through its products that enable data center construction. As 2025 ended, Bernstein raised its share price target for Caterpillar Inc. (NYSE:CAT) to $630 from $557 and kept a Market Perform rating on the shares. It explained that the firm could benefit from the alignment between monetary and fiscal policy. In January, Bank of America kept a Buy rating on the shares as part of its preference for mining equipment providers over agriculture equipment providers. Cramer continued to assert the AI tailwinds for Caterpillar Inc. (NYSE:CAT) and explained how the firm’s Chairman Jim Umpleby has been crucial in shaping its business:

“I gotta tell you this, Caterpillar’s incredible. Because the more you dig into it, the more you say, even NVIDIA recognizes the role of Caterpillar. That company has so pivoted. David, there’s companies that we remember, that company’s at 56. I remember when Goldman downgraded, before it was at a 100. What happened is, that you had just a, Jim Umpleby came in, and said we’re done. We’re done with this episodic, we’re done with the idea that China, was it good, was it bad. What we’re gonna do is, return money to shareholders, we’re gonna grow the business, we’re gonna go into all new areas, because he was from solar, and it worked!”

“But I did think that his idea of making it so that it was a secular grower, that was something he said day one. I remember when I met him at lunch, I said, I don’t think you can do that. And he just said, well, you know what, there are a lot of doubters. He didn’t say like, just watch me. He wasn’t like that. He was not boisterous. He said, I have to do it, we have to end this stuff. And he pulled it off.”

While we acknowledge the potential of CAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.