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Here is Why Schlumberger (SLB) is One of the Best Large Cap Energy Stocks

Schlumberger Limited (NYSE:SLB) is the world’s leading provider of technology for reservoir characterization, drilling, production, and processing to the global energy industry. The company’s clients include major oil and gas producers worldwide.

An aerial view of a well site, depicting the scale of oil and gas operations.

Schlumberger Limited (NYSE:SLB) reported a lackluster performance for its Q1 2024, falling below estimates in both revenue and earnings, primarily due to a significant reduction in drilling activity in Mexico. The company’s adjusted EPS of $0.72 slightly missed expectations by $0.01, while its revenue also fell by 2.5% YoY to $8.49 billion and missed consensus by $102.52 million.

That said, Schlumberger Limited (NYSE:SLB)’s cash flow from operations more than doubled to $660 million in Q1, while its free cash flow came in at $103 million. The company aims to return more than 50% of its free cash flow to shareholders, with a commitment to return a minimum of $4 billion through dividends and share repurchases this year. SLB announced a quarterly dividend of $0.285 per share last month and currently boasts an annual dividend yield of 3.39%.

Schlumberger Limited (NYSE:SLB) has warned that the global upstream investment in 2025 is expected to decline compared to last year, and so the company is working on optimizing supply chains, cutting costs, and aligning resources with activity levels in the coming quarters. Moreover, SLB remains focused on expanding beyond fossil fuels, with its combined revenue from CCS, geothermal, critical minerals, and data center solutions on pace to exceed $1 billion in 2025.

While we acknowledge the potential of SLB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SLB and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks to Buy According to Hedge Funds.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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