IBM Announces New Innovation Center and Acquires Seek AI
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Interestingly, New York City was chosen because it's already a major hub for AI innovation, with over 2,000 AI startups and a growing AI workforce. IBM also announced the acquisition of Seek AI, which is a local startup that develops AI agents in order to help businesses use their data more effectively. IBM will use Seek AI's technology and expertise as part of the watsonx AI Labs.
In addition, over the next five years, IBM plans to give successful local AI startups access to expert advice and mentorship, as well as potential funding from IBM's global $500 million Enterprise AI Venture Fund. The lab will work on developing practical AI tools for areas like customer service, cybersecurity, and supply chain management, while promoting responsible AI use.
What Is the Target Price for IBM?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on eight Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $260.62 per share implies that shares are trading near fair value.
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