Chevron Stock Rebounds on Microsoft AI Power Deal

Chevron Corp (NYSE:CVX) is up 0.9% in premarket trading after announcing a 20-year agreement to supply natural gas-fired power to a Microsoft (MSFT) data center in West Texas. The facility, dubbed "Project Kirby," is expected to consume 2.7 gigawatts of electricity, with power delivery slated to begin in 2028. 

The news arrives as CVX attempts to stabilize following a recent pullback. Shares have shed nearly 12% over the past month and are testing their lowest levels since January, after falling below the former support at the $180 level. The 200-day moving average has kept losses in check, however, with the stock is still up 13.9% year to date.

Analyst sentiment is mixed coming into today, Of the 26 brokerages in coverage, 18 carry a "buy" or better rating, while seven say "hold" and one rates the stock a "strong sell."

Options traders, however, have been more bullish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), Chevron's 50-day call/put volume ratio of 3.23 ranks higher than 80% of readings from the past year.