Caterpillar Falls Most Since April 2025 After Baird Downgrade and AI Stock Pullback
Caterpillar Inc. shares fell by the most in a single day since April 2025 as traders pulled back from AI-related stocks and Baird downgraded the company. Analyst Mircea Dobre cut the stock to “neutral” from “outperform,” citing growing calls to restrict data center construction, which has been a major driver of the industrial giant’s recent growth. Dobre warned that limits on data center development could hurt Caterpillar’s order volume. He also pointed to political risk, saying local governments are pausing data center projects and several states have stopped offering tax breaks for these facilities.