SLB’s New Digital and AI Deals Could Be A Game Changer For SLB (SLB)

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SLB recently secured a three-year agreement with Azule Energy and expanded its AI collaboration with NVIDIA, signaling a deeper involvement in digital and AI services for the energy sector. These deals reinforce SLB’s digital growth narrative, particularly through its “AI Factory for Energy” initiative. While promising for recurring revenue and offsetting traditional service volatility, investors should also consider the potential pressure on margins from rising R&D and digital investment costs, as well as the risk of accelerating decarbonization targets.

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