Hightower’s Stephanie Link is buying SLB stock because she believes the world’s largest oilfield services company is a hidden beneficiary of artificial intelligence and the stock is cheap. “SLB is one of my favorite stocks for 2026,” Link said in an exclusive video. “I think the industry’s organic growth will improve this year and over the next few years. And this is tied to electricity demand. And this is tied to everything from AI to building data centers to repairing the power grid.” SLB stock is off to a strong start to 2026, up 14% year-to-date and hitting its highest level in more than 14 months this week. President Donald Trump’s seizure of Venezuela’s oil resources has boosted stock prices, and some investors believe this will lead to increased demand for companies like SLB that help extract oil from the ground. Stocks are still down more than half of their all-time highs reached more than a decade ago. SLB 1Y Mountain SLB Stock, 1 Year But Link’s bullish stance is not tied to the Venezuela story, but about companies that have taken steps to improve profitability that are not yet valued by the market. And it’s also backed by AI. Here is Mr. Link’s full analysis: “SLB is one of my favorite stocks for 2026. I like this stock for two reasons. One, from a macro perspective, I think the industry will recover this year and in the coming years. And two, because of the company-specific fundamentals associated with SLB.” “So let’s start with the macro. I think the industry’s organic growth will improve this year and over the next few years. And this has to do with power demand. And this has to do with everything from AI to building data centers to repairing the power grid. We know that all of these things need power. We don’t have enough power. And I think oilfield service companies will benefit.” “Secondly, I think international activity is going to be even higher in the second half of 2026, and a lot of that is because U.S. shale is really maturing. But secondly, in the Middle East, we’re expecting a significant improvement in capital spending, up 6% year over year and down 1% year over year.” “Here are five fundamental reasons why I like SLB. First, if the international recovery is right, these companies will benefit as 81% of their revenue comes from overseas. Second, they are an industry leader with double-digit revenue growth and EBITDA margins. Third, they are a digital They have a solutions business, and that’s the real differentiator. They have a suite of AI products that help customers increase efficiency and productivity. That gives SLB pricing power. So I expect margins to increase and revenue to increase.” In the third quarter, this business alone generated nearly $1 billion in recurring revenue on a 12-month basis. Fourth, they expect $400 million in synergies. Fifth, the company is expected to return about $4 billion to shareholders this year, in addition to last year, through stock buybacks and dividends. “So you get all this at 15x earnings and 8.6x EBITDA. And the stock is still down 30% from its 2023 highs. So I think some kind of nasty reversal is possible.”
