Nvidia Is Doubling Down on the Energy Industry with SLB. Does That Strengthen the NVDA Bull Case Now?

Chip major Nvidia (NVDA) is set to collaborate with energy services company Schlumberger (SLB) to build AI infrastructure and models for the industry. The deal will lead the two companies to work under an "AI Factory for Energy" framework wherein SLB will act as the modular design partner for Nvidia's DSX data centers. To be powered by generative AI models and industry-ready agentic AI, the framework will run on SLB's digital platforms. Consequently, other energy companies can use these platforms and leverage AI for their business operations.

And by manufacturing data center components off-site, they aim to cut down on costs, labor constraints, and lead times. This makes it much easier and cheaper for energy operators to scale up computing capacity on demand.