Caterpillar stock hits record high on Project Kilby participation
Caterpillar Inc. shares surged to a new 52-week high of $1,015.92 after announcing participation in Project Kilby, a 20-year power agreement between Chevron Corp. and Microsoft Corp. The project, targeting 2.67 gigawatts of capacity, involves GE Vernova and Solar Turbines, a Caterpillar subsidiary. Chevron expects a Final Investment Decision by the end of 2026, with first power delivery in 2028.
*this image is generated using AI for illustrative purposes only.
Caterpillar Inc. 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, a major energy initiative involving Chevron Corp. and Microsoft Corp. Chevron's subsidiary, Energy Forge One LLC, signed a 20-year power purchase agreement with Microsoft 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 will supply the majority of the turbines, while Solar Turbines provides additional capacity. Caterpillar owns Solar Turbines. Chevron expects a Final Investment Decision on Project Kilby by the end of 2026, with first power delivery anticipated in 2028.
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.
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). 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.
| Metric | Value |
|---|---|
| 52-Week High | $1,015.92 |
| Prior 52-Week High | $994.49 |
| 20-day SMA | $916.82 |
| 50-day SMA | $877.45 |
| 100-day SMA | $798.90 |
| 200-day SMA | $673.33 |
| 12-Month Return | 176.47% |
Caterpillar shares were up 2.82% at $1013.66 at the time of publication on Monday.
What specific revenue contribution is Caterpillar expecting from Solar Turbines' involvement in Project Kilby once operations begin in 2028?
Will Project Kilby serve as a blueprint for Caterpillar to secure similar power purchase agreements with other tech giants expanding their AI infrastructure?
How might the Final Investment Decision in 2026 impact Caterpillar's capital expenditure plans for the energy segment over the next two years?
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