---
title: "SLB, Baker Hughes Are Beating Big Tech By 30% In 2026: Here's Why"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/275470673.md"
description: "SLB and Baker Hughes are outperforming Big Tech by approximately 30% year-to-date, driven by a strong energy sector performance. While Big Tech has stalled, SLB has surged 31.7% and Baker Hughes 30.8% due to increased contracts and capital spending in the energy sector. This trend indicates a market preference for tangible assets over digital hype, as investors question the speed of AI revenue growth in tech. The energy sector's ongoing success suggests a shift towards more stable, high-return projects in the industrial space."
datetime: "2026-02-10T13:50:26.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/275470673.md)
  - [en](https://longbridge.com/en/news/275470673.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/275470673.md)
---

# SLB, Baker Hughes Are Beating Big Tech By 30% In 2026: Here's Why

Wall Street spent 2025 worshiping algorithms. Early 2026 belongs to oilfield steel. While Big Tech has stalled, the energy complex is sprinting toward its eighth straight green week — a streak not seen in nearly two years.

### **Sector Scoreboard (YTD As Of Feb. 9)**

ETF

Sector

YTD %

What It Says

**State Street Energy Select Sector SPDR ETF** (NYSE:XLE)

Energy

**+19.97%**

Capital spending cycle is alive

**State Street Technology Select Sector SPDR ETF** (NYSE:XLK)

Technology

**\-0.43%**

Valuation reset in progress

Energy Vs Tech YTD Performance; _Data Source: State Street_

And the real stars aren't just **Exxon Mobil Corp** (NYSE:XOM) and **Chevron Corp** (NYSE:CVX). The quiet winners are the picks-and-shovels names: **SLB NV** (NYSE:SLB) up 31.7% YTD and **Baker Hughes Co** (NASDAQ:BKR) up 30.8% YTD, both handily outpacing the market and the AI darlings.

## Why Drillers Are Winning

This rally isn't about memes or models — it's about contracts. SLB's recent wave of international project awards, longer-cycle offshore work, and higher-margin digital completions have reignited confidence that service providers are entering a multiyear spending upswing.

Baker Hughes is seeing the same dynamic in LNG, turbines, and subsea equipment, where backlogs are robust and pricing power is improving.

Exxon and Chevron — together more than 40% of XLE's weight — are providing the backdrop. Their capital programs are tilting toward complex, high-return projects that require more engineering, more equipment, and more services.

That's why SLB and BKR are outperforming even the supermajors.

## Why Tech Is Lagging

Meanwhile, XLK's slight YTD decline masks a bigger story: investors are questioning whether AI revenue arrives fast enough to justify cloud-era valuations.

The rotation is clear — from promise to cash flow.

## Why This Matters

If energy keeps its streak alive, it signals something bigger than a trade: a market that prefers tangible scarcity over digital hype.

For now, the smartest bet hasn't been chips or chatbots — it's been the rigs, pipes, and service crews keeping the world powered.

Tech may win the headlines, but in 2026, industrial muscle is winning the money.

_Image: Shutterstock_

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## Related News & Research

- [As Trump Pushes for "Energy Dominance," 3 Core Energy Holdings Stand Out for Patient Investors](https://longbridge.com/en/news/283361190.md)
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- [How Investors May Respond To Baker Hughes (BKR) First NovaLT Gas Turbine Order In South America](https://longbridge.com/en/news/282593773.md)
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