SLB (NYSE:SLB) shares rose on Wednesday as the company expanded its collaboration with Nvidia (NASDAQ:NVDA) to boost AI infrastructure for the energy sector.
The broader market also moved higher, with the S&P 500 up 0.5% and energy stocks gaining 0.1%.
Details
- The partnership will focus on building modular data centers and generative AI models for large-scale energy deployments, extending a relationship that dates back to 2008.
- The goal is to turn vast volumes of energy data into actionable insights, improving efficiency and supporting more sustainable systems.
- The companies will combine NVIDIA's Omniverse libraries with SLB's digital platforms to enhance operations and advance lower-carbon energy solutions.
- The move underscores SLB's push to integrate advanced technologies as it positions itself for the energy transition.
Q1 Profit Could Take Hit On Middle East Crisis
This month, SLB said first-quarter revenue will be lower than previously expected. The company also anticipates additional costs that could reduce earnings by about 6 to 9 cents per diluted share for the quarter.
Despite the disruption, SLB said it remains confident in the resilience of its global business, including the Middle East, citing more than 100 years of experience navigating geopolitical crises while serving its global customer base.
Technical Analysis
The broader market is experiencing positive momentum, with major indices showing gains; the Nasdaq is up 0.59% and the Russell 2000 is up 1.01%. SLB’s performance aligns with this trend, suggesting that the stock is moving in concert with broader market dynamics.
Currently, SLB is trading 8.9% above its 20-day simple moving average (SMA) and 20.4% above its 100-day SMA, indicating strong short-term and longer-term momentum. Shares increased 23.58% over the past 12 months. They are currently closer to their 52-week highs than lows, reflecting robust performance.
The RSI is at 58.99, which is considered neutral territory, while the MACD shows a value of -0.2381, with the signal line at -0.4966, indicating a bullish crossover. This suggests that while the stock is not overbought, there is potential for upward momentum as the MACD remains above its signal line.
The combination of neutral RSI and bullish MACD suggests mixed momentum, indicating that while the stock has room to grow, traders should remain cautious of potential volatility.
- Key Resistance: $52.50
- Key Support: $49.00
Sector Performance
SLB is outperforming its sector, with a daily gain of 3.98% compared to the Energy sector’s modest increase of 0.11%.
Over the past 30 days, the Energy sector has gained 10.44%, but SLB’s recent performance suggests it is capitalizing on specific growth opportunities, especially in the realm of technology and AI integration.
Earnings & Analyst Outlook
SLB Limited is slated to provide its next financial update on April 24, 2026 (estimated).
- EPS Estimate: 58 cents (Down from 72 cents)
- Revenue Estimate: $8.79 Billion (Up from $8.49 Billion)
- Valuation: P/E of 21.5x (Indicates fair valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $53.69. Recent analyst moves include:
- Bernstein: Outperform (Raises Target to $56.10) (Mar. 12)
- Goldman Sachs: Buy (Raises Target to $60.00) (Mar. 4)
- Jefferies: Buy (Raises Target to $58.00) (Feb. 2)
Top ETF Exposure
- State Street Energy Select Sector SPDR ETF (NYSE:XLE): 4.45% Weight
- The Energy Select Sector SPDR Fund (NYSE:XLE): 3.67% Weight
- Invesco S&P 500 Equal Weight Energy ETF (NYSE:RSPG): 4.89% Weight
Significance: Because SLB carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
SLB Stock Price Activity: Slb shares were up 3.97% at $52.52 at the time of publication on Wednesday, according to Benzinga Pro data.
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