Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTDamilola EsebameSat, September 5, 2026 at 12:07 AM GMT+2 5 min readOn the August 27, 2026 episode of Mad Money, a longtime viewer named Jeff from San Francisco listed his top five holdings for Jim Cramer's diversification game.The five names, Alphabet, NVIDIA, Apple, Caterpillar, and Eli Lilly, span four sectors and would appear well-balanced under standard sector classification, 247 Wall St. reported.Cramer's response flagged a structural shift in revenue that most investors in industrial stocks have yet to absorb. With Caterpillar reclassified as a data center stock, four of Jeff's five positions, Alphabet, NVIDIA, Apple, and Caterpillar, all draw revenue from AI infrastructure spending. The portfolio spans four sectors on paper but is increasingly a concentrated AI bet in practice.Caterpillar's second quarter revealed a company in transformationCaterpillar reported its first $20 billion quarter in Q2 2026, with revenue reaching $20.5 billion for a 24% gain over the prior year. Adjusted earnings per share came in at $8.17, as Caterpillar disclosed in its August 4, 2026, earnings release.Within the Power and Energy segment, power generation revenue climbed 29% due to demand for reciprocating engines and turbines used in data center applications.Retail sales to power generation customers surged 72% year over year, and the company's backlog expanded to a record $72 billion, Utility Dive reported.Some customers are placing equipment orders as far out as 2030, reflecting the depth of demand for data center construction, Joe Creed, Chairman of the board and CEO at Caterpillar, noted on the earnings call. That growth profile prompted Cramer to pull Caterpillar out of Jeff's portfolio entirely.The market has priced in the shift, with Caterpillar shares up roughly 36% year to date and about 86% over the trailing 12 months through September 2, 2026, Yahoo Finance reported. The stock trades at a forward price-to-earnings ratio of 23.94, as of September 2, 2026, a multiple more typical of technology names than of industrial peers, Guru Focus confirmed.Record S&P 500 concentration amplifies the hidden overlapCaterpillar's transformation fits a broader pattern, changing what diversification means for investors who hold index funds or build their own stock portfolios.The ten largest S&P 500 stocks now control nearly 41% of the index's total market capitalization at the end of 2025, eclipsing the dot-com bubble's peak of about 27%.RBC Wealth Management data show the top-10 weighting hovered between roughly 18% and 23% from 1990 through 2015. It has nearly doubled over the past decade, driven largely by AI-linked gains in a small group of mega-cap names.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info