Chevron stock price target resets as oil strategy shifts
So, if you're investing in Chevron, you're making (probably) a long-term bet that requires patience. The same holds for any energy company. Investment analysts Zacks would not argue with you if you now have big gains in the shares this year and want to cash out.
To pay off in the long run, Chevron, Exxon, and others are investing massively in computer power and, now, artificial intelligence to fine-tune their exploration activities.
Decent prospects nowadays are often 7,000 feet or more more before the earth's surface. Chevron's Jack/St. Malo field in the Gulf of Mexico, first discovered in 2003, is as much as 7,000 feet beneath the Gulf's surface.
The Permian Basin, the biggest U.S. producing region, has produced oil from 5,000 feet to 25,000 feet below the surface.
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Global demand is going to rise, especially since electric vehicle production has been staggered by consumer prices unwilling to pay the market prices. And, in the United States, tax breaks for electric vehicles were ended in the 2025 tax bill.
Energy leads the S&P 500
Energy stocks have attracted investor interest this year, as Barrons noted, by their relative stability compared with risky tech bets like software.
Year-to-date, the Standard & Poor's 500 energy sector has gained nearly 20%, tops among the 11 sectors in the index.
Technology overall is down 4.5%, weighed down by softness in some of the giants, including Microsoft (down 17.9%), Salesforce (down 30.4%), and even Nvidia (down nearly 1%). Nvidia reports fourth-quarter results on Feb. 25.
The weakest sector is consumer discretionary stocks, dragged down by stress in such stocks as Tesla, Amazon.com, and Booking Holdings.
Related: Valero targets billion-dollar Venezuela oil windfall
This story was originally published by TheStreet on Feb 18, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.
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