One of the hottest blue-chip stocks in 2026 comes from outside the technology sector and may be surprising to investors who are ignoring sectors like industrials. Caterpillar Inc (NYSE:CAT) stock is up 65% in 2026 and Freedom Capital Markets Chief Market Strategist Jay Woods thinks there could be even more upside connected to the AI trade.
Caterpillar: The Gold Standard
Woods is no stranger to highlighting the AI opportunity for large-cap tech names, like those in the Magnificent Seven. When it comes to other sectors, Caterpillar could be one of the most underrated names connected to AI.
"When we talk about the AI story and the infrastructure behind it, Caterpillar to me is the gold standard of that bill," Woods tells Benzinga in an exclusive interview.
The market expert highlighted an interview with OpenAI CEO Sam Altman and CNBC co-host David Faber that featured Caterpillar vehicles in the backdrop related to building data centers. Woods said this could be Caterpillar passing "the eye test alone."
