Tech Boosts Baker Hughes' Future, But Oil Investments Lag

Baker Hughes is banking on artificial intelligence to drive its future growth. The company is so confident in this tech that it expects to hit $1. 5 billion in data center orders sooner than planned. This is a big deal because it shows how much demand there is for data center power. But it's not all good news. The oil industry is facing some challenges. Global spending on oil exploration and production is expected to drop by a high-single-digit percentage. This is due to a few things. First, there's too much oil on the market. Second, some countries in OPEC+ are struggling to meet their production targets. Until the market absorbs this extra supply, oil investments are likely to stay low. Looking ahead to 2026, things might not improve much. Early signs suggest another year of low activity and spending cuts. However, there could be a slow recovery, especially in international and offshore markets. So, while Baker Hughes is excited about its tech future, the oil industry is taking a breather. It's a reminder of how different sectors can have very different outlooks.