Why Is Caterpillar Stock Surging On Monday?

Caterpillar Inc. (NYSE:CAT) shares surged Monday morning, breaking past the $1,000 threshold to set a new all-time 52-week high of $1,015.92.

The stock movement follows an announcement that Caterpillar is participating in Project Kilby. Chevron Corp.’s (NYSE:CVX) subsidiary, Energy Forge One LLC, signed a 20-year power purchase agreement with Microsoft Corp. (NASDAQ:MSFT) to develop a co-located power facility in West Texas.

Equipment Supply Details

Project Kilby is expected to deliver approximately 2.67 gigawatts of capacity. GE Vernova (NYSE:GEV) will supply the majority of the turbines, while Solar Turbines provides additional capacity. Caterpillar owns Solar Turbines.

Executive Perspectives

The project aims to fuel artificial intelligence growth. “AI is reshaping the global economy, and abundant, affordable, reliable energy is essential to fueling that transformation,” stated Jeff Gustavson, Chevron president of New Energies. Noelle Walsh, Microsoft president of Cloud Operations + Innovation, added, “Our agreement with Chevron helps ensure we’ll have dedicated, large-scale power to support the evolution and reliability of advanced compute.”

Core Business Context

Caterpillar operates as a manufacturer of construction and mining equipment diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its reporting segments include construction, resource, and energy. Chevron expects a Final Investment Decision on Project Kilby by the end of 2026, with first power delivery anticipated in 2028.

Critical Levels To Watch for CAT Stock

CAT is extended above its major moving averages, trading 10.6% above the 20-day SMA ($916.82), 15.5% above the 50-day SMA ($877.45), 26.9% above the 100-day SMA ($798.90), and 50.5% above the 200-day SMA ($673.33). That kind of spacing typically signals a powerful trend, but it also raises the odds of sharper pullbacks when momentum cools.

The moving-average structure remains bullish, with the 20-day SMA above the 50-day SMA and a golden cross (50-day above 200-day) that occurred in July 2025.

Over the last 12 months, the stock has been up 176.47%. The current price is also above the prior 52-week high of $994.49—often a sign that buyers are still in control.

CAT Stock Price Activity: Caterpillar shares were up 2.82% at $1013.66 at the time of publication on Monday, according to Benzinga Pro data.

Photo: DennisF via Shutterstock