Caterpillar (CAT 0.35%) stock inched up 1.8% through 11:35 a.m. ET Monday after investment bank JPMorgan Chase raised its price target on the stock 3%, to $515 per share. According to the analyst, Caterpillar is playing a role in the market providing backup power for data centers used for artificial intelligence (AI) services.

Yes, you read that right. JPMorgan Chase just said Caterpillar, a company best known for producing construction, mining, and agricultural equipment, is actually an artificial intelligence stock.

Wall Street purrs over Cat

JPMorgan Chase estimates the global value of providing backup power to AI data centers could approach $23 billion by 2028. And it isn't the only bank feeling optimistic about Caterpillar stock. On Friday, StreetInsider.com reported that Jefferies Financial Group had named Caterpillar its "top pick" in the machinery sector.

In its note, Jefferies made all the usual arguments in favor of Caterpillar, citing potential growing demand for construction equipment to rebuild war-torn nations like Ukraine (and perhaps now Syria as well?). Hopes for loosened oil production regulations in the U.S. could boost demand for construction equipment in U.S. oil and gas as well, at the same time that Jefferies sees more demand for mining minerals used in renewable energy (lithium and cobalt for example).

On top of all that, SI says Jefferies agrees with JP that Caterpillar is "a key player in the backup power segment for data centers."

Is Caterpillar stock a buy?

And yet, Caterpillar stock is already up 51% over the last 52 weeks. Does this mean it's too late to buy the stock?

Not necessarily. Priced at just 18 times trailing earnings, Caterpillar stock still costs significantly less than the average S&P 500 stock. Still, most analysts see the stock growing earnings at 10% or less over the next five years, which may not be fast enough to justify an 18x P/E ratio. Caterpillar's 1.4% dividend yield also seems less than generous.

Long story short, Caterpillar may be a cheaper-than-average stock. But it's still not cheap enough to buy.