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Caterpillar Inc. (NYSE:CAT) is among the stocks Jim Cramer reviewed while discussing the Iran ceasefire that triggered a relief rally. Cramer highlighted the positives around the company as he said:

Now, Caterpillar’s different. Caterpillar’s up there, and its presence is a reminder of how terrific this market can be. CAT represents infrastructure money, construction money, and data center money. It’s been such a horse because the company’s got multiple ways to win. I think Caterpillar moved up on the prospect of more infrastructure, perhaps worldwide, more construction, because rates came down, at least for most of the session.

And of course, the data center, because you need CAT generators to back up the usual power sources. I think the data centers may actually have hidden opportunities. You can string CAT engines, maybe even thousands of them, and tie them together, and then plug them directly into the natural gas patches we have all over the country and power data centers without raising electric rates.

Caterpillar Inc. (NYSE:CAT) provides heavy machinery, engines, turbines, and rail equipment. In addition, the company offers power systems, parts, and support that keep the equipment working.

While we acknowledge the potential of CAT 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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