Shares of Caterpillar Inc. (CAT  ) are trading higher Friday afternoon as investors weigh fresh developments supporting the broader artificial intelligence infrastructure buildout, while a sharp pullback in expectations for another Federal Reserve interest-rate hike provides an additional tailwind for industrial stocks.

Here's what investors need to know.

Broadcom Financing Drive Catalyzes AI Infrastructure Rally

Caterpillar shares are rising alongside several AI infrastructure and semiconductor-related names as investors digest Broadcom Inc.'s reported plans to raise as much as $60 billion in financing that could help AI customers including Anthropic purchase chips and other computing infrastructure.

Tight HBM4 Memory Supply Signals Persistent AI Hardware Demand

Separately, Samsung Electronics reportedly offered 2027 pricing for its next-generation HBM4 memory at more than three times the current HBM3E price, highlighting tight supply and strong demand for the memory used in AI accelerators. The reported pricing remains subject to negotiations with customers.

Data Center Expansion Powers Caterpillar's Power Generation Growth

Caterpillar is directly positioned to capture this demand as tech companies confront electrical grid bottlenecks. The company's Power Generation segment continues to see rapid growth tied to data center applications, backed by major orders for natural-gas generator sets and turbines engineered for hyperscale campuses.

Strong Power & Energy Segment Performance Reflects AI Demand

This physical infrastructure cycle is already showing up on CAT's bottom line. The company reported a 17% year-over-year surge in Power & Energy sales in the second quarter, establishing the segment as a core driver offsetting broader cyclical headwinds in traditional construction and mining equipment.

CAT Stock Rises Friday Afternoon

CAT Price Action: Caterpillar shares were up 2.39% at $846.07 at the time of publication on Friday, according to Benzinga Pro data.