Latest news with #Watsonx
Yahoo
04-07-2025
- Business
- Yahoo
IBM Concert Gains Traction: Can This AI-Driven Solution Aid the Stock?
International Business Machines Corporation IBM recently announced that Deutsche Telekom AG DTEGY will deploy the IBM Concert solution to improve overall efficiency. This AI-powered automation solution will provide Deutsche Telekom with intelligent resilience for complex IT operations such as patch management and the orchestration of security-related activities. This, in turn, will help Deutsche Telekom to better address the complexity of critical vulnerabilities across its hybrid cloud platform and respond faster to potential Concert brings together all relevant data and specializations for AI-driven recommendations and workflows. It helps reduce operational costs for patching vulnerabilities through fast response times and higher efficiency for securing all systems, freeing up IT resources and manpower, which then can be used for other productive purposes. Using the IBM Watsonx platform, the fully automated patching process for operating systems has been designed to reduce patching time from 90 minutes to a maximum of 20 minutes. Leveraging Generative AI, IBM Concert develops an optimized and prioritized patching plan by creating contextual information about system topology and business requirements that enables end-to-end AI-powered automation. IBM's Watsonx platform is likely to be the core technology platform for IBM's AI capabilities. Watsonx delivers the value of foundational models to the enterprise, enabling them to be more productive. This enterprise-ready AI and data platform comprises three products to help organizations accelerate and scale AI — the studio for new foundation models, generative AI and machine learning, the fit-for-purpose data store built on an open lake house architecture and the toolkit to help enable AI workflows to be built with responsibility and transparency. With a surge in traditional cloud-native workloads and associated applications, along with a rise in generative AI deployment, there is a radical expansion in the number of cloud workloads that enterprises are currently managing. This has resulted in heterogeneous, dynamic and complex infrastructure strategies, which, in turn, have led firms to undertake a cloud-agnostic and interoperable approach to highly secure multi-cloud management. IBM is poised to benefit from healthy demand trends for hybrid cloud and AI, which drive the Software and Consulting segments. The company's growth is expected to be aided by analytics, cloud computing and security in the long term. A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely boost profitability. Buoyed by strong demand for hybrid cloud and AI, IBM has surged 63.7% over the past year compared with the industry's growth of 9.4%, outperforming peers like Microsoft Corporation MSFT and Inc. AMZN. While Microsoft has gained 6.6%, Amazon jumped 11.3% over this period. One-Year IBM Stock Price Performance Image Source: Zacks Investment Research IBM is currently witnessing an uptrend in estimate revisions. Earnings estimates for 2025 have moved up 4.6% to $10.95 over the past year, while the same for 2026 has increased 4.5% to $11.66. The positive estimate revision portrays bullish sentiments about the stock's growth potential. Image Source: Zacks Investment Research Despite solid hybrid cloud and AI traction, IBM is facing stiff competition from Amazon Web Services and Microsoft Azure. Increasing pricing pressure is eroding margins, and profitability has trended down over the years, barring occasional spikes. The company's ongoing, heavily time-consuming business model transition to the cloud is challenging. Weakness in its traditional business and foreign exchange volatility remain significant concerns. From a valuation standpoint, IBM appears to be trading at a premium relative to the industry and is trading well above its mean. Going by the price/book ratio, the company shares currently trade at 9.92, higher than 3.95 for the industry and the stock's mean of 6.01. Image Source: Zacks Investment Research IBM hybrid cloud blends public cloud, private cloud and on-premises infrastructure to develop a single, flexible, cost-optimal IT infrastructure. With the buyout of HashiCorp, the company has created a comprehensive end-to-end hybrid cloud platform built for AI-driven complexity, delivering clients extensive application, infrastructure and security lifecycle management capabilities. The IBM Concert solution is increasingly gaining wider adoption by incorporating modern AI and automation technologies for a future-proof, scalable and highly secure IT operating with a Zacks Rank #3 (Hold), IBM appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. It is also trading at premium valuation metrics and investors could wait for a better entry point to cash in on its long-term fundamentals. Consequently, it might not be prudent to bet on the stock at the moment. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Globe and Mail
03-07-2025
- Business
- Globe and Mail
IBM Concert Gains Traction: Can This AI-Driven Solution Aid the Stock?
International Business Machines Corporation IBM recently announced that Deutsche Telekom AG DTEGY will deploy the IBM Concert solution to improve overall efficiency. This AI-powered automation solution will provide Deutsche Telekom with intelligent resilience for complex IT operations such as patch management and the orchestration of security-related activities. This, in turn, will help Deutsche Telekom to better address the complexity of critical vulnerabilities across its hybrid cloud platform and respond faster to potential threats. IBM Concert brings together all relevant data and specializations for AI-driven recommendations and workflows. It helps reduce operational costs for patching vulnerabilities through fast response times and higher efficiency for securing all systems, freeing up IT resources and manpower, which then can be used for other productive purposes. Using the IBM Watsonx platform, the fully automated patching process for operating systems has been designed to reduce patching time from 90 minutes to a maximum of 20 minutes. Leveraging Generative AI, IBM Concert develops an optimized and prioritized patching plan by creating contextual information about system topology and business requirements that enables end-to-end AI-powered automation. Watsonx Platform: The Pillar of IBM Concert IBM's Watsonx platform is likely to be the core technology platform for IBM's AI capabilities. Watsonx delivers the value of foundational models to the enterprise, enabling them to be more productive. This enterprise-ready AI and data platform comprises three products to help organizations accelerate and scale AI — the studio for new foundation models, generative AI and machine learning, the fit-for-purpose data store built on an open lake house architecture and the toolkit to help enable AI workflows to be built with responsibility and transparency. IBM Rides on Hybrid Cloud, AI Focus With a surge in traditional cloud-native workloads and associated applications, along with a rise in generative AI deployment, there is a radical expansion in the number of cloud workloads that enterprises are currently managing. This has resulted in heterogeneous, dynamic and complex infrastructure strategies, which, in turn, have led firms to undertake a cloud-agnostic and interoperable approach to highly secure multi-cloud management. IBM is poised to benefit from healthy demand trends for hybrid cloud and AI, which drive the Software and Consulting segments. The company's growth is expected to be aided by analytics, cloud computing and security in the long term. A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely boost profitability. Price Performance Buoyed by strong demand for hybrid cloud and AI, IBM has surged 63.7% over the past year compared with the industry 's growth of 9.4%, outperforming peers like Microsoft Corporation MSFT and Inc. AMZN. While Microsoft has gained 6.6%, Amazon jumped 11.3% over this period. One-Year IBM Stock Price Performance Image Source: Zacks Investment Research Estimate Revision Trend of IBM IBM is currently witnessing an uptrend in estimate revisions. Earnings estimates for 2025 have moved up 4.6% to $10.95 over the past year, while the same for 2026 has increased 4.5% to $11.66. The positive estimate revision portrays bullish sentiments about the stock's growth potential. Image Source: Zacks Investment Research IBM Growth Prospects Marred by Margin Woes Despite solid hybrid cloud and AI traction, IBM is facing stiff competition from Amazon Web Services and Microsoft Azure. Increasing pricing pressure is eroding margins, and profitability has trended down over the years, barring occasional spikes. The company's ongoing, heavily time-consuming business model transition to the cloud is challenging. Weakness in its traditional business and foreign exchange volatility remain significant concerns. Key Valuation Metric From a valuation standpoint, IBM appears to be trading at a premium relative to the industry and is trading well above its mean. Going by the price/book ratio, the company shares currently trade at 9.92, higher than 3.95 for the industry and the stock's mean of 6.01. End Note IBM hybrid cloud blends public cloud, private cloud and on-premises infrastructure to develop a single, flexible, cost-optimal IT infrastructure. With the buyout of HashiCorp, the company has created a comprehensive end-to-end hybrid cloud platform built for AI-driven complexity, delivering clients extensive application, infrastructure and security lifecycle management capabilities. The IBM Concert solution is increasingly gaining wider adoption by incorporating modern AI and automation technologies for a future-proof, scalable and highly secure IT operating model. However, with a Zacks Rank #3 (Hold), IBM appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. It is also trading at premium valuation metrics and investors could wait for a better entry point to cash in on its long-term fundamentals. Consequently, it might not be prudent to bet on the stock at the moment. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report International Business Machines Corporation (IBM): Free Stock Analysis Report Deutsche Telekom AG (DTEGY): Free Stock Analysis Report
Yahoo
29-06-2025
- Business
- Yahoo
International Business Machines Corporation (IBM) Outperforms with AI-Driven Growth in 2025
International Business Machines Corporation (NYSE:IBM) is one of the Best Dividend Stocks of 2025 as it has surged by over 32% since the start of the year. A closeup of a woman's hands typing rapidly on a laptop in a corporate office setting. The company has positioned itself as a major force in enterprise-focused artificial intelligence. The company has been strategically preparing for this pivotal moment in the evolution of computing, and the continued rise of AI is expected to be a major growth driver for IBM's stock in the coming years. When OpenAI introduced ChatGPT in November 2022, International Business Machines Corporation (NYSE:IBM) quickly followed with its own offering. Just six months later, it launched Watsonx, a suite of generative AI tools tailored specifically for business clients, setting itself apart from consumer-oriented large language models. Although initial adoption was modest, momentum picked up quickly. In the first quarter of 2024, International Business Machines Corporation (NYSE:IBM) reported over $1 billion in contracts tied to Watsonx. That figure doubled to $2 billion in the following quarter, rose to $3 billion in the third quarter, and surpassed $5 billion by year-end, reflecting rapidly growing demand for its enterprise AI solutions. International Business Machines Corporation (NYSE:IBM)'s dividend history also makes it a solid investment. The company has been rewarding shareholders with growing dividends for the past 30 years. Currently, it offers a quarterly dividend of $1.68 per share and has a dividend yield of 2.30%, as of June 26. While we acknowledge the potential of IBM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure. None.
Yahoo
28-06-2025
- Business
- Yahoo
International Business Machines Corporation (IBM) Outperforms with AI-Driven Growth in 2025
International Business Machines Corporation (NYSE:IBM) is one of the Best Dividend Stocks of 2025 as it has surged by over 32% since the start of the year. A closeup of a woman's hands typing rapidly on a laptop in a corporate office setting. The company has positioned itself as a major force in enterprise-focused artificial intelligence. The company has been strategically preparing for this pivotal moment in the evolution of computing, and the continued rise of AI is expected to be a major growth driver for IBM's stock in the coming years. When OpenAI introduced ChatGPT in November 2022, International Business Machines Corporation (NYSE:IBM) quickly followed with its own offering. Just six months later, it launched Watsonx, a suite of generative AI tools tailored specifically for business clients, setting itself apart from consumer-oriented large language models. Although initial adoption was modest, momentum picked up quickly. In the first quarter of 2024, International Business Machines Corporation (NYSE:IBM) reported over $1 billion in contracts tied to Watsonx. That figure doubled to $2 billion in the following quarter, rose to $3 billion in the third quarter, and surpassed $5 billion by year-end, reflecting rapidly growing demand for its enterprise AI solutions. International Business Machines Corporation (NYSE:IBM)'s dividend history also makes it a solid investment. The company has been rewarding shareholders with growing dividends for the past 30 years. Currently, it offers a quarterly dividend of $1.68 per share and has a dividend yield of 2.30%, as of June 26. While we acknowledge the potential of IBM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure. None. 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
Globe and Mail
24-06-2025
- Business
- Globe and Mail
Could IBM Stock Surge Another 16%?
Shares of International Business Machines (NYSE: IBM) have soared more than 60% over the past year as the company's cloud and artificial intelligence (AI) strategies meshed with investors. IBM has not only returned to consistent revenue and free-cash-flow growth, but growth is now starting to accelerate. Revenue was up 3% adjusted for currency in 2024, and it's expected to rise at least 5% in 2025 despite an uncertain economic backdrop. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Last week, an analyst at Wedbush boosted his price target on IBM stock from $300 to $325, implying an additional 16% upside from Friday's closing price. While analyst price targets shouldn't carry much weight with investors, the reason behind the price target boost should be of interest. Wedbush calls IBM an "AI winner" and expects the company's "growth renaissance" to continue. IBM's AI strategy is working Unlike other technology giants buying up mountains of powerful AI accelerators for their data centers and training highly advanced AI models, IBM is focusing on solving real problems for its enterprise customers. IBM's AI business has two main parts: software and consulting. While software is important, consulting is the secret sauce. On the software side, IBM offers its Watsonx platform, which enables customers to train, deploy, and manage AI models and agents with advanced governance features. For a large enterprise with sensitive data and strict regulatory requirements, a trusted AI platform like Watsonx is critical. IBM does offer its own AI models, although the focus is on low costs and high efficiency. IBM's Granite family of models are much smaller than top-tier AI models, but they're designed to be fine-tuned for specific tasks. The Granite 4.0 family of models includes Granite 4.0 Tiny, an AI model capable of being run on consumer-grade hardware. Using the most advanced AI models, running AI workloads can be extremely expensive. Part of IBM's pitch is that its AI platform can help enterprises lower costs. IBM has booked more than $6 billion worth of generative AI -related business, but the majority actually stems from its consulting business. Enterprises need an AI software platform, but they also need guidance, implementation, and other services. IBM's consulting arm can work with clients to deploy AI workloads on third-party clouds or IBM's own cloud. Watsonx is available on AWS and Azure, so clients already committed to those platforms can still make use of IBM's AI services. It's impossible to know how the AI industry will evolve over the next few years, given how quickly the technology is advancing and how much money is being thrown into AI data centers. While providing AI compute infrastructure or training the most advanced AI models could certainly be viable business models, IBM's approach looks likely to pay off. By focusing on delivering value to its enterprise clients with consulting services and inexpensive yet capable AI models, IBM is positioned to be an AI winner. Not too late to buy IBM stock Shares of IBM are not the bargain they were a few years ago, but there's still a lot to like. IBM expects to generate free cash flow of about $13.5 billion in 2025, putting the price-to-free cash flow ratio at 19. That's not necessarily cheap, but the valuation looks reasonable considering IBM's success in AI. Beyond AI, IBM has some other long-term growth opportunities worth mentioning. Most notable is quantum computing, which could eventually be a major business for IBM. IBM recently outlined plans to build a full-scale fault-tolerant quantum computer by 2029. If successful, IBM's quantum computers could find real-world applications and tap into what could be an enormous market opportunity. Investors shouldn't care all that much about what analysts say, but in this case, Wedbush appears to be on the money. IBM's AI strategy is accelerating the company's growth, and it should continue to do so for the foreseeable future. Should you invest $1,000 in International Business Machines right now? Before you buy stock in International Business Machines, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and International Business Machines wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025
