Siebert's Mark Malek Bullish on Industrial Enablers Vertiv, Eaton, and Caterpillar for AI Exposure

Siebert Financial ($SIEB) Chief Investment Officer Mark Malek identified industrial equipment and infrastructure providers Vertiv ($VRT), Eaton ($ETN), and Caterpillar ($CAT) as prime long-term artificial intelligence beneficiaries, arguing that physical infrastructure bottlenecks offer compelling risk-reward outside crowded megacap chipmakers.
Malek's thesis focuses on the critical physical enablers required to scale high-density compute environments:
• Vertiv Holdings ($VRT): Positioned as a direct beneficiary of rising data center thermal envelopes, providing advanced liquid cooling systems, power distribution units, and thermal management architectures necessary to cool modern GPU clusters.
• Eaton ($ETN): Dominates high-voltage electrical grid integration, switchgear, transformers, and power quality hardware required to connect utility substations directly into hyperscale server facilities.
• Caterpillar ($CAT): Serves as the backbone for critical backup power generation via utility-scale diesel and natural gas gensets, alongside civil excavation equipment used in primary site preparation for new gigawatt-scale data center campuses.
Malek emphasized that as direct semiconductor valuations remain stretched, institutional capital is steadily rotating toward these foundational "pick-and-shovel" suppliers that hold deep backlogs, multi-year pricing power, and indispensable operational exposure to the global data center buildout.