MONACO - Global energy technology company SLB (NYSE: SLB) is enhancing its partnership with tech giant NVIDIA (NASDAQ:NVDA) to focus on creating artificial intelligence (AI) solutions tailored for the energy industry. This collaboration aims to expedite the development and distribution of specialized generative AI foundation models on SLB's platforms worldwide.
SLB will utilize NVIDIA's NeMo software, part of NVIDIA AI Enterprise suite, to develop custom AI models that can operate in various environments, from data centers and clouds to edge computing. These models are designed to meet the unique demands of the energy sector, including tasks in subsurface exploration, production operations, and data management. The goal is to empower energy professionals to engage with complex technical processes more effectively, potentially leading to higher value and reduced carbon emissions.
Olivier Le Peuch, CEO of SLB, emphasized the role of generative AI as a key driver for balancing energy production with decarbonization efforts. Jensen Huang, NVIDIA's founder and CEO, highlighted the potential of these custom models to provide industry professionals with advanced insights, which could accelerate both the optimization of current energy supplies and the development of future clean energy innovations.
The partnership between SLB and NVIDIA dates back to 2008, with a history of collaboration in utilizing graphics processing units (GPUs) for geoscience applications. The integration of NVIDIA's NeMo and NVIDIA NIM inference microservices into SLB's platforms is expected to offer a robust framework for leveraging generative AI in technical workflows.
The announcement of this intensified collaboration was made at the SLB Digital Forum 2024, currently taking place in Monaco.
SLB is a global technology company focused on driving energy innovation for a balanced planet, with operations in over 100 countries.
The information in this article is based on a press release statement.
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Schlumberger's proposed acquisition of ChampionX, valued at $7.75 billion, has been delayed due to a request for additional information from the U.S. Department of Justice. Despite this, the company reported robust second-quarter earnings for 2024, exceeding expectations with an adjusted earnings per share of $0.85 and an adjusted EBITDA margin of 25%. A 5% quarter-over-quarter revenue growth across all regions was also reported.
Lastly, Schlumberger has secured substantial contracts, including a contract from Petrobras for Santos Basin development and a partnership with Aker Carbon Capture and CO280 Solutions Inc. for a large-scale carbon capture project at a pulp and paper mill on the U.S. Gulf Coast. These recent developments underscore Schlumberger's commitment to technological innovation and environmental sustainability.
InvestingPro Insights
As SLB (NYSE: SLB) deepens its partnership with NVIDIA to innovate within the energy sector using AI technology, it's essential to consider the company's financial health and market performance, which can provide additional context to their capacity for sustained investment in such advanced technologies.
InvestingPro Data indicates that SLB has a market capitalization of $58.81 billion, asserting its substantial presence in the industry. With a P/E ratio of 13.49, the company might be seen as having a higher valuation when considering near-term earnings growth. However, it's worth noting that SLB has a PEG ratio of 1.1 for the last twelve months as of Q2 2024, which could suggest a reasonable balance between its price tag and expected earnings growth.
The company's revenue growth is also notable, with a 12.68% increase over the last twelve months as of Q2 2024, pointing towards a healthy expansion in its operations. Moreover, SLB's commitment to shareholder returns is demonstrated by its impressive track record of maintaining dividend payments for 54 consecutive years, a testament to its financial stability and investor-friendly approach.
InvestingPro Tips highlight a couple of areas for potential investor consideration. SLB has been trading at a high P/E ratio relative to near-term earnings growth, which could be a point of analysis for those looking at the stock's valuation. Additionally, the company has been trading near its 52-week low, which might present a buying opportunity for investors who believe in the long-term prospects of the company, especially given its latest AI-driven initiatives with NVIDIA.
For those seeking more detailed analysis and additional insights, there are a total of 18 InvestingPro Tips available for SLB at https://www.investing.com/pro/SLB, which can further inform investment decisions in the context of the company's latest technological ventures and market dynamics.
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