JPMorgan Resumes Coverage of Chevron (CVX) with ‘Overweight’ Rating

Group 1 - Chevron Corporation (NYSE:CVX) is recognized as one of the 11 Best Energy Stocks to Buy for Dividends in 2026 [1] - JPMorgan has resumed coverage of Chevron with an 'Overweight' rating and a price target of $176, indicating an upside of over 6% from current levels [2][3] - Following the Hess merger, Chevron is seen as being in an attractive phase of its investment cycle, with a structural cost savings program expected to deliver $3 billion-$4 billion in annual run-rate savings by 2026 [3] Group 2 - Chevron is exploring opportunities in the AI sector, specifically in talks to provide natural gas-fired power to a data center, leveraging its domestic production capacity of over 3 billion cubic feet per day (Bcfd) [4] - A final investment decision for the data center project is anticipated in the first half of the year, with the first power delivery expected by 2027-28 [4] - JPMorgan's analyst estimates that the data center project could yield mid-teens unlevered returns on capital [4]