SLB, Baker Hughes Are Beating Big Tech By 30% In 2026: Here's Why

Wall Street spent 2025 worshiping algorithms. Early 2026 belongs to oilfield steel. While Big Tech has stalled, the energy complex is sprinting toward its eighth straight green week — a streak not seen in nearly two years.

Sector Scoreboard (YTD As Of Feb. 9)

And the real stars aren't just Exxon Mobil Corp (NYSE:XOM) and Chevron Corp (NYSE:CVX). The quiet winners are the picks-and-shovels names: SLB NV (NYSE:SLB) up 31.7% YTD and Baker Hughes Co (NASDAQ:BKR) up 30.8% YTD, both handily outpacing the market and the AI darlings.

Why Drillers Are Winning

This rally isn't about memes or models — it's about contracts. SLB's recent wave of international project awards, longer-cycle offshore work, and higher-margin digital completions have reignited confidence that service providers are entering a multiyear spending upswing.

Baker Hughes is seeing the same dynamic in LNG, turbines, and subsea equipment, where backlogs are robust and pricing power is improving.

Exxon and Chevron — together more than 40% of XLE's weight — are providing the backdrop. Their capital programs are tilting toward complex, high-return projects that require more engineering, more equipment, and more services.

That's why SLB and BKR are outperforming even the supermajors.

Why Tech Is Lagging

Meanwhile, XLK's slight YTD decline masks a bigger story: investors are questioning whether AI revenue arrives fast enough to justify cloud-era valuations.

The rotation is clear — from promise to cash flow.

Why This Matters

If energy keeps its streak alive, it signals something bigger than a trade: a market that prefers tangible scarcity over digital hype.

For now, the smartest bet hasn't been chips or chatbots — it's been the rigs, pipes, and service crews keeping the world powered.

Tech may win the headlines, but in 2026, industrial muscle is winning the money.

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