Nabors Industries (NBR) Fell by Almost 15% This Week. Here is Why.

The share price of Nabors Industries Ltd. (NYSE:NBR) fell by 14.91% between May 13 and May 20, 2025, putting it among the Energy Stocks that Lost the Most This Week. Let’s shed some light on the development.

With operations in approximately 20 countries, Nabors Industries Ltd. (NYSE:NBR) is a leading provider of advanced technology for the energy industry.

Nabors Industries Ltd. (NYSE:NBR) suffered a setback this week after Barclays analyst Eddie Kim downgraded the stock from Equal Weight to Underweight and almost halved its price target from $53 to $28. The analyst expects Nabors to witness outsized activity and pricing declines in the lower 48 states and select international markets over the next year, as a result of the tough macroenvironment amid declining crude oil prices and a weak demand outlook. While the SANAD joint venture with Saudi Aramco is viewed as a potential growth area for the company, there are concerns about the venture’s financial sustainability.

That said, Nabors Industries Ltd. (NYSE:NBR) beat forecasts in both earnings and revenue in its Q1 2025 results reported last month. The company also completed the acquisition of Parker Wellbore in March, bolstering its portfolio with complementary businesses.

While we acknowledge the potential of NBR to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NBR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None.