JPMorgan Resumes Coverage of Chevron (CVX) with ‘Overweight’ Rating

Chevron Corporation (NYSE:CVX) is included among the 11 Best Energy Stocks to Buy for Dividends in 2026.

Chevron Corporation (NYSE:CVX) manufactures and sells a range of high-quality refined products, including gasoline, diesel, marine and aviation fuels, premium base oil, finished lubricants, and fuel oil additives.

On January 20, JPMorgan resumed coverage of Chevron Corporation (NYSE:CVX) with an ‘Overweight’ rating and a price target of $176, indicating an upside of over 6% from the current levels. Following the completion of the long-awaited Hess merger, the analyst thinks that Chevron is in an attractive phase of its investment cycle. Moreover, the oil major has been working on a structural cost savings program, putting it on track to deliver $3 billion-$4 billion in annual run-rate savings by 2026.

Moreover, Chevron Corporation (NYSE:CVX) is looking to capitalize on the AI boom and is in exclusive talks to provide natural gas-fired power to a data center, leveraging its large domestic production base of over 3 Bcfd. While a deal hasn’t been secured yet, the company expects to reach a final investment decision in the first half of this year and deliver first power by 2027-28. JPMorgan’s Arun Jayaram estimated that the data center project could generate mid-teens unlevered returns on capital.

While we acknowledge the potential of CVX as an investment, 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 CVX and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.