Chevron shares climb on analyst upgrades and Microsoft AI data‑center agreement

Chevron's stock gained about 2% on Thursday, reaching $169.55 after trading as high as $169.55 and closing the prior session at $165.69. Trading volume fell to roughly 9.5 million shares, below its average daily volume.

Analysts boosted the stock: Wolfe Research upgraded Chevron to Outperform, citing a more attractive valuation after the recent pullback and a strong free‑cash‑flow outlook. Other firms issued buy or raise‑to‑buy ratings, with price targets ranging from $205 to $225. Some analysts, however, noted lower oil prices as a near‑term headwind and lowered their price targets modestly.

A highlighted catalyst is Chevron's 20‑year power‑supply deal with Microsoft for AI data‑centers in West Texas, expanding the company's natural‑gas‑fired electricity business. The oil major also continues to attract income investors, offering a dividend yield above 4% and a record 39 consecutive years of dividend increases.

Investment commentary weighs buying the stock now at below $180 against waiting for a deeper dip if oil prices fall further amid U.S.–Iran negotiations. The consensus view suggests a balanced approach, combining current buying with the option to add more shares later.