Latest news with #InternationalBusinessMachinesCorporation
Yahoo
23-05-2025
- Business
- Yahoo
Analyst Highlights Potential ‘Big Driver' for IBM (IBM), Calls Pullback ‘Transitory'
As major AI players waver due to valuation and demand concerns, investors are looking for relatively under-the-radar tech stocks for growth potential. IBM has been gaining ground as the company plans new strategies for a turnaround. The stock is up 16% so far this year. Wamsi Mohan, Bank of America Global Research senior IT hardware analyst, said in a recent program on CNBC that he believes International Business Machines Corporation (NYSE:IBM) has the ability to meet its targets and called the pullback the company faced 'transitory.' 'They've divested a lot of assets that were not growing, they've invested in assets that are progrowth, and they're changing the growth profile of this company—and we think for the better. Now when you look at the quarter itself, the quarter was 2% constant currency growth, and the company has guided to about 5% plus constant currency growth for the year. So there's some skepticism on their ability to meet those targets. When we dig into the numbers, we actually think there is a way for them to meet or beat these kinds of numbers, and that's really driven by the fact that they're in a mainframe launch year, and the mainframe still is very relevant, contrary to maybe popular belief, and can be a big driver for numbers.' Mohan said he is 'very bullish' on International Business Machines Corporation (NYSE:IBM). International Business Machines Corporation (NYSE:IBM) is indeed making a comeback. As of the end of Q4, IBM's AI products and services surpassed $5 billion in total bookings, with $2 billion added just since last quarter. Last year, IBM Common Stock (NYSE:IBM) updated its Granite family of AI models for enterprise use, making them about 90% more cost-efficient than large models. RedHat is also key in IBM Common Stock (NYSE:IBM) open-source GenAI strategy. Management highlighted that RHEL AI and OpenShift AI platforms are gaining traction, along with IBM Common Stock (NYSE:IBM) watsonx AI solutions. While we acknowledge the potential of IBM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than IBM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Is International Business Machines (IBM) the Best Quantum Computing Stock to Invest in Now?
We recently published a list of . In this article, we are going to take a look at where International Business Machines Corporation (NYSE:IBM) stands against other best quantum computing stocks to invest in now. When AI first gained widespread attention a few years ago, much of the conversation focused on its potential to boost productivity, streamline data analysis, and improve efficiency within businesses. While AI has certainly made an impact in those areas, its capabilities extend far beyond. Lesser-known but equally important applications of AI include optimizing drug development processes, detecting financial fraud, and strengthening cybersecurity systems. However, achieving significant breakthroughs in these complex fields will require more advanced AI systems. That's where quantum computing enters the picture. Although quantum technology hasn't yet been fully integrated with AI, its potential to unlock new levels of performance and problem-solving is immense, offering a powerful future synergy between the two fields. Quantum computing is a new type of computing that uses the strange rules of quantum physics to solve really hard problems. Unlike regular computers that use bits (which are either 0 or 1), quantum computers use qubits (quantum bits), which can be both 0 and 1 at the same time. This lets them handle a lot more information at once. Qubits can also be linked together in a special way called entanglement, which makes them even more powerful. Although today's quantum computers are still early and not perfect, they're improving fast and could one day change fields like medicine, finance, and cybersecurity. In a recent CNBC interview, Executive Chair & Chairman of the Board of IonQ, provided insights into the company's strategy and vision for the future of quantum computing and its integration with artificial intelligence. Chapman explains that the company uses a unique approach to building quantum computers based on trapped-ion technology, which offers greater stability and scalability than other quantum systems. This method allows for more precise control over qubits, which is essential for solving complex computational problems currently beyond classical computers' reach. Chapman discusses how quantum computing can significantly enhance AI capabilities. Traditional AI algorithms, especially those involving large datasets and intricate optimization challenges, are limited by the processing power of classical systems. Quantum computers, however, have the potential to process exponentially larger datasets and perform calculations that would otherwise take years. This could lead to breakthroughs in areas like drug discovery, supply chain optimization, and financial modeling. The former CEO also highlighted the company's focus on practical applications rather than just theoretical advancement. The company is actively developing quantum algorithms specifically designed to complement AI models, and it is working with major tech firms and research institutions to accelerate real-world adoption. Chapman envisions a future where quantum computing becomes a critical tool for AI development, enabling smarter, faster, and more efficient solutions across industries. To compile the list of 12 Best Quantum Computing Stocks to Invest in Now, we conducted thorough research, analyzing multiple financial media reports and industry reports. Starting with an initial list of 20 companies, we narrowed it down by choosing pure-play quantum computing stocks that are popular among elite hedge funds. The final selection is ranked in ascending order of their hedge fund sentiment, as of Q4 2024. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A closeup of a woman's hands typing rapidly on a laptop in a corporate office setting. Number of Hedge Fund Holders: 60 International Business Machines Corporation (NYSE:IBM) is a quantum computing company that has been investing in the technology for years. The company offers cloud access to its quantum systems and has built tools and partnerships to help businesses and researchers develop quantum applications. With a clear roadmap toward making quantum practical and useful, IBM stands out as a key player in this fast-developing field. IBM's Q1 2025 earnings showed strong performance, exceeding expectations with $14.5 billion in revenue and $2 billion in free cash flow. The company reported solid growth in software, led by Red Hat and AI solutions, while consulting revenue remained stable. IBM's hybrid cloud and AI-focused strategy drove success, with significant traction in generative AI. The company remains confident in its full-year guidance of 5%+ revenue growth and $13.5 billion in free cash flow. IBM's diversified portfolio and strong client relationships position it well for future growth despite macro uncertainties. In Q1 2025, International Business Machines Corporation (NYSE:IBM) expanded quantum capabilities with Europe's first IBM Quantum System Two. The company highlighted its leadership in generative AI and virtualization technologies, which intersect with quantum computing infrastructure. IBM's software portfolio, including Red Hat OpenShift, is positioned to support emerging quantum workloads. Overall, IBM ranks 5th on our list of best quantum computing stocks to invest in now. While we acknowledge the growth potential of IBM, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than IBM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . 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Yahoo
12-05-2025
- Business
- Yahoo
International Business Machines (IBM): AI and Hybrid Cloud Strategy Drives $290 Price Target
We recently published a list of . In this article, we are going to take a look at where International Business Machines Corporation (NYSE:IBM) stands against other AI stocks making moves this week. Is China finally gaining supremacy in the AI arms race? Not quite, but executives from some of the top artificial intelligence companies believe that the country needs to tweak its infrastructure and boost exports to stay ahead in the game. In a US Senate hearing held last Thursday, American AI giants' leaders stressed that even though the US is ahead in the AI race, Washington needs to boost infrastructure and champion AI chip exports to maintain its supremacy over Beijing. READ ALSO: and The U.S. Senate Commerce Committee, chaired by Republican Senator Ted Cruz, is aiming to reduce the regulatory barriers to artificial intelligence in the U.S. This is particularly after China managed to woo the world with its AI advancements, such as cheaper and efficient AI models from DeepSeek and an advanced AI chip from Huawei. The US tech industry is using these concerns to push the Trump administration toward favourable policies, including loosening the limits on the export of AI chips. 'The number-one factor that will define whether the U.S. or China wins this race is whose technology is most broadly adopted in the rest of the world. The lesson from Huawei and 5G is that whoever gets there first will be difficult to supplant'. Sam Altman, CEO of OpenAI, also testified at the hearing. He stated how he believes societal advances from AI will accelerate in the next few years through U.S. innovation. However, he also stated that 'investment in infrastructure is critical.' In a written testimony reviewed earlier by Reuters, it was reported how the AI leaders would also be urging U.S. lawmakers to streamline federal permitting for artificial intelligence energy needs and initiate more government data sets for AI training. 'America's advanced economy relies on 50-year-old infrastructure that cannot meet the increasing electricity demands driven by AI, reshoring of manufacturing, and increased electrification.' For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A closeup of a woman's hands typing rapidly on a laptop in a corporate office Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products. On May 8, Stifel analysts maintained a 'Buy' rating on the stock with a price target set at $290.00. The rating has been issued after the company's investor event at its annual user conference. The analysts noted that the event focused on how IBM is using AI and hybrid cloud tools like Red Hat to help businesses adopt AI. Stifel analysts particularly highlighted three areas that can influence IBM's earnings growth over the short and long term. The first substantial factor that analysts noted for margin expansion and free cash flow (FCF) growth has been IBM's internal efforts to deploy AI. Through the said deployment, IBM will be able to increase internal investments in areas such as research and development, marketing, and more. Second, watsonx Orchestrate, IBM's generative AI and automation solution, was recognized as having the potential to become a commercial product that helps other businesses increase productivity. Finally, the next generation of IBM's mainframe, z17, was pointed out as a way for IBM to reclaim workloads that have shifted to x86 servers and cloud platforms. The analysts concluded with a positive outlook on IBM, stating that the company's focus on growth appears stronger now than before. Overall, IBM ranks 8th on our list of AI stocks making moves this week. While we acknowledge the potential of IBM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than IBM but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
09-05-2025
- Business
- Yahoo
Is International Business Machines Corporation (IBM) the Best Dow Stock?
We recently published a list of . In this article, we are going to take a look at where International Business Machines Corporation (NYSE:IBM) stands against other Dow stocks. The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well. It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends. We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year. In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest. We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A closeup of a woman's hands typing rapidly on a laptop in a corporate office Interest as of Apr 30, 2025: 2.27% International Business Machines Corporation (NYSE:IBM) is an integrated solutions and services provider. The company operates in Infrastructure, Software, and Financing segments. The company is among the top 5 most shorted stocks on the Dow. To accelerate manufacturing and technology innovation, the tech giant plans to invest $150 billion during the next five years in the US. As part of this investment, more than $30 billion will be allocated to research and development to improve the manufacturing of mainframe and quantum computers in America. IBM's CEO Arvind Krishna said on the occasion: 'We have been focused on American jobs and manufacturing since our founding 114 years ago, and with this investment and manufacturing commitment we are ensuring that IBM remains the epicenter of the world's most advanced computing and AI capabilities.' Due to the potential negative effects of the U.S. Department of Government Efficiency (DOGE), the company highlighted concerns about its Consulting business over the next few months. CEO Arvind Krishna mentioned that this segment could be at serious risk if discretionary spending cuts are initiated by DOGE. Despite reporting better-than-expected first-quarter results, the company's shares fell 5%. Management reiterated its full-year guidance reflecting 5% revenue growth along with the free cash flow generation of $13.5 billion. Overall, IBM ranks 30th on our list of best and worst Dow stocks. While we acknowledge the potential of IBM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than IBM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
International Business Machines Corporation (IBM): Watsonx Teams With Oracle Cloud to Advance Multi-Agent AI Workflows
We recently published a list of 10 AI Stocks Getting Wall Street's Attention Right Now. In this article, we are going to take a look at where International Business Machines Corporation (NYSE:IBM) stands against other AI stocks that are getting Wall Street's attention right now. Investors in the artificial intelligence trade have been frantic ever since the tariff frenzy started. Particularly on April 2, dubbed Liberation Day by President Donald Trump, the administration announced sweeping tariffs that led to significant market volatility and a sharp downturn in stock indices. While the President may strive to make the United States the 'world capital' of artificial intelligence, the aggressive trade and tariff moves that have since followed have been threatening the crucial technology and weakening competition with China. Executives and experts in AI and data center construction have been worried about how trade levies would significantly increase the cost of constructing, equipping, and operating the data centers that will, in turn, power AI development. READ NEXT: 10 AI Stocks in the News Today and 10 AI Stocks in the Spotlight This Week. Fast forward to earnings reports from some of the Big Tech, and it can be noted how investors have been worried more than necessary about the AI trade. Meta and Microsoft, in particular, reported strong quarterly results that demonstrated how artificial intelligence progress won't necessarily slow amid economic turmoil. 'Few stocks are truly immune to Trump tariffs [and] trade war, but AI is a lot less impacted than investors currently believe. We're early in a very steep growth curve right now, and that goes for AI infrastructure.' What happens next to AI stocks largely depends on what's next for tariffs. If it's better than expected, these and other AI stocks may climb and lift valuations. On the other hand, if tariffs seem high, these stocks could fall further. Nevertheless, strong companies, particularly the likes of Nvidia and Palantir, are likely to win over the longer term due to their smart innovations. According to Wells Fargo's Christopher Harvey, it may be time for investors to reenter the trade. 'The group's risk/reward today is much more attractive than a year ago. We remain in a durable AI investment super cycle.' For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
