Dear Reader,
The SpaceX IPO is all over the news.
$1.75 trillion …
Biggest IPO in history …
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But here's the thing …
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It has to do with what I call Elon's "Project Unlimited" …
And it could unlock one of the biggest wealth-creation events of our lifetime.
Elon himself believes Project Unlimited will help unlock $100 trillion in potential growth …
And one little-known company is at the center of it all.
if you want to learn how to position yourself before the name of this company potentially becomes front-page news …
Click here to see the details.
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MICHAEL ROBINSON |
More Than Just Dirt: Caterpillar Is the AI Stock Nobody Saw Coming
Author: Jeffrey Neal Johnson. Date Posted: 4/23/2026.
Key Points
- Caterpillar's exceptional market performance is fueled by sustained global infrastructure spending and the industrial reshoring trend.
- The company has established itself as a critical technology partner by providing essential backup power generation systems for the expanding AI data center industry.
- A long history of dividend increases and a significant share buyback program underscore a strong commitment to delivering shareholder value.
- Special Report: Elon’s “Hidden” Company
While the market's growth stories often center on software and digital platforms, a powerful—and perhaps more durable—trend is unfolding in heavy industry. The companies that build the physical world are reaching unprecedented valuations as a market rotation into tangible assets gains momentum.
This shift is no longer a simple recovery narrative; it's increasingly fueled by accelerating global spending on an expanded definition of infrastructure that covers both traditional projects and the digital backbone of the modern economy.
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👉 Unlock the ticker now and get it completely free.Caterpillar (NYSE: CAT) exemplifies this industrial sector resurgence. With Caterpillar’s stock price up roughly 40% year-to-date and trading near all-time highs, it has outpaced broader market averages. Investors appear to be rewarding businesses with strong, predictable cash flow and a direct role in building and powering global commerce.
For market watchers, the long-term outlook for heavy machinery now rests on a firmer foundation.
Performance in a World Under Construction
Sustained demand for Caterpillar's iconic yellow equipment is driven by two powerful, parallel forces. First, there is a global push to modernize infrastructure—not only high-profile rebuilding of roads, bridges and airports, but also the vital, less-visible upgrades to electrical grids and water systems.
Second, industrial reshoring is bringing manufacturing and supply chains back to North America and Europe to enhance resilience. That shift has spurred demand for new factories, warehouses and logistics hubs, generating a long-term construction boom. These macro drivers translate directly into Caterpillar’s strong financial results, linking real-world activity to stock performance.
Caterpillar’s recent results illustrate that connection:
Dominant market performance: Shares of CAT are trading just below their 52-week high of $820.20, reflecting more than a 170% gain over the past 12 months. This momentum signals investor confidence in Caterpillar’s strategy and execution.
Explosive earnings power: In its quarterly report on Jan. 29, Caterpillar beat analyst expectations with diluted earnings per share of $5.16, driven by a 17.9% year-over-year revenue increase to $19.13 billion—a notable result for a mature industrial company.
Exceptional profitability: Caterpillar operates with high efficiency, posting a best-in-class return on equity of 45.76%. This metric highlights how effectively management is using shareholder capital to generate profits.
CAT’s High-Tech Growth Engine
Caterpillar's growth story now extends beyond construction equipment. Several forward-looking catalysts position the company to benefit from high-growth industries tied to digitalization and automation.
One major driver is the Energy and Transportation segment, which supplies backup power generation systems to AI data centers. These facilities require uninterrupted power, making industrial-scale generators mission critical. As global AI computing demand expands, so does the need for reliable energy, placing Caterpillar at the center of the digital infrastructure build-out.
At the same time, Caterpillar is shifting toward automation and technology-integrated solutions. The recent acquisition of a self-driving tractor startup signals this strategic move. It's not just about futuristic tech; it's a step into higher-margin, recurring revenue from services and software. Equipping machines with autonomous capabilities can help transition Caterpillar from one-time equipment sales to ongoing service and subscription models, improving customer productivity and creating more predictable revenue streams.
This growth narrative is reinforced by a strong commitment to returning capital to shareholders.
As a member of the Dividend Aristocrats, Caterpillar's 30-year track record of consecutive dividend increases underscores its role as a reliable dividend compounder across economic cycles.
The company's current annual dividend of $6.04 per share is backed by a conservative payout ratio of 32.09%, suggesting the dividend is well supported and has room to grow.
An active $20 billion share buyback program approved in mid-2024 continues to reduce outstanding shares, which can incrementally increase value per remaining share over time.
Weighing the Opportunity in a Market Leader
Caterpillar has evolved from a cyclical industrial company into a diversified infrastructure and energy-technology leader. Its performance supports the strength of the physical economy and demonstrates its ability to adapt to new, higher-growth sources of demand.
Market sentiment reflects that shift. While the consensus rating from 24 analysts is a Moderate Buy, recent price-target upgrades from major firms such as Truist ($920) and Jefferies ($900) indicate there may still be meaningful upside. These targets build on confidence in data center and reshoring trends as durable revenue drivers.
Investors should weigh the whole picture. CAT's beta of 1.52 suggests higher historical volatility than the broader market, and its business remains tied to the global economy's health. That risk is offset by strong operational cash flow and strategic exposure to secular tailwinds.
For those seeking industrial exposure, Caterpillar's combination of growth catalysts and shareholder returns presents a compelling case. More cautious investors may prefer to wait for a pullback before initiating a position, while investors with higher risk tolerance might view current momentum as evidence of persistent strength.
Ternus the Page: Apple's Engineering Prodigy Takes the Reins
Author: Chris Markoch. Date Posted: 4/23/2026.
Key Points
- Apple’s appointment of John Ternus signals a shift back toward hardware-led innovation and long-term product development.
- Tim Cook remaining as executive chairman provides continuity, particularly in global operations and geopolitical strategy.
- Apple’s AI strategy is likely to stay device-centric, with a growing focus on privacy-driven, on-device intelligence.
- Special Report: Elon’s “Hidden” Company
Tim Cook is stepping down as chief executive officer of Apple Inc. (NASDAQ: AAPL). The news broke after the market closed on April 20 and included the announcement that John Ternus, the company’s senior vice president of hardware engineering, will take over for Cook in September 2026.
It wasn’t quite a “where were you when...” moment, but the news did catch investors off guard — like an athlete retiring with several years of gas left in the tank. Insiders say the rumors had circulated for some time, yet it still seemed like a genuine surprise to many. The move is unusual and has several implications.
There Seems to Be a Trend
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👉 Unlock the ticker now and get it completely free.Cook isn’t the only CEO to make a surprise departure in recent years. Bob Iger stepped aside at Disney (NYSE: DIS) in March, as did James Quincey at Coca-Cola (NYSE: KO). And in 2025, Doug McMillon turned over the reins at Walmart (NASDAQ: WMT).
In many cases, a CEO transition is methodically choreographed over quarters or even years. Such was the case with Warren Buffett at Berkshire Hathaway (NYSE: BRK.B). That gives analysts and investors time to digest the change and what it may mean for the company’s prospects and its stock.
When a CEO announces an abrupt departure, it often signals they were forced out due to poor performance. There’s no indication anything like that is happening here. Cook has faced criticism for not expanding the legacy of innovation he inherited, but there’s no denying he’s been exceptionally good to AAPL shareholders. Since Steve Jobs’ death in 2011, Apple has grown from a company worth about $300 billion to one worth roughly $4 trillion.
Investors are left to weigh different scenarios for Apple. Here are a few key takeaways.
Why John Ternus?
Ternus is a 25-year Apple veteran who has overseen development of products such as the iPhone Air, the MacBook Neo, AirPods (as hearing aids), and the Mac’s transition to Apple silicon. He has the pedigree to lead what should be viewed more as a transition than a transformation.
He also brings relative youth. At 51, he isn’t a placeholder hire — Apple is likely expecting Ternus to be at the helm for years. That suggests the company will continue to lean into the product side of the business rather than relying solely on services for growth.
Practically, that means Apple will likely double down on custom silicon and breakthrough hardware to reassert its innovation edge. It also points to a renewed competition with pure-play AI semiconductor firms.
What Does This Mean for Apple’s AI Ambitions?
Ternus’ hardware background matters here. Apple has historically taken a hardware-first, device-centric approach to AI, which frustrates some investors who want bolder software plays. That approach makes sense for a company built on devices, even though AI is primarily a software breakthrough.
Apple is therefore unlikely to build a large language model from scratch. Instead, reports suggest the company is exploring new AI-enabled devices such as Siri-enabled smart glasses, a wearable pendant, and AirPods with cameras.
Those product efforts illustrate how Ternus’ appointment shifts decision-making toward product development. Cook’s strength has been operations — scaling the business globally — while Ternus’ strength is designing and shipping hardware.
Apple will also need to articulate an on-device AI strategy that emphasizes user privacy, an area where it can differentiate itself. Analysts think a “Private AI” approach could become a meaningful long-term advantage for Apple.
Cook Is Not Leaving Apple
Crucially, Cook will remain with Apple as executive chairman. That arrangement isn’t unprecedented, but it’s also not typical: new CEOs generally prefer a clean runway without the former CEO remaining as board chairman. In this case, however, it appears to be a deliberate compromise.
Ternus brings a product-centric focus and is young enough to see the transition through. Cook, meanwhile, can continue to manage Apple’s delicate relationships with the United States and China. Recent years have shown those markets pulling Apple in different directions, and the company clearly values Cook’s diplomatic role.
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