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Shares of Caterpillar Inc. (CAT) slipped about 4% on Wednesday after the company announced an expanded collaboration with tech giant NVIDIA (NVDA) to incorporate artificial intelligence into its machinery, factories, job sites and supply chains.
Caterpillar is a manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.
Shares of NVDA gained 1% after the announcement.
The partnership is aimed at incorporating AI into the company’s machines, including construction, mining and power equipment, allowing for AI-assisted and potentially autonomous operations.
Caterpillar also unveiled the Cat AI Assistant built using NVIDIA Riva open speech models at the CES 2026 conference. The assistant will answer questions and provide personalized recommendations on equipment, parts, maintenance and more using Caterpillar’s own data.
The company is also building physically accurate digital twins of its factories so it can design, simulate and optimize layouts and production processes before building in the real world, Caterpillar said.
“As AI moves beyond data to reshape the physical world, it is unlocking new opportunities for innovation — from job sites and factory floors to offices,” said CEO Joe Creed.
On Stocktwits, retail sentiment around CAT shares stayed within the ‘bullish’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.
Meanwhile, sentiment around NVDA jumped from ‘bullish’ to ‘extremely bullish’ territory amid ‘high’ message volume.
CAT shares have gained 66% this year while NVDA added 35%.
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