Latest news with #WatsonxAILabs
Yahoo
3 days ago
- Business
- Yahoo
International Business Machines (NYSE:IBM) Launches Watsonx AI Labs In New York City
International Business Machines recently announced the launch of Watsonx AI Labs, a significant business expansion aiming to enhance AI capabilities and collaboration in New York City. During the past month, IBM's stock price moved by 7%, a figure that substantially exceeds the market's 2% climb in the past week. While IBM's innovations in AI, such as the partnership with Deutsche Bank and the Deca Technologies collaboration, align with the market's positive sentiment, these developments would have added weight to the broader upward trend observed in the stock price. Every company has risks, and we've spotted 5 risks for International Business Machines you should know about. The end of cancer? These 23 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. The launch of Watsonx AI Labs is a pivotal development for IBM, potentially influencing its future prospects significantly. This initiative aligns with IBM's focus on AI and cloud services, two sectors that have been earmarked for potential growth. Over the past five years, IBM's total return, including share price appreciation and dividends, has been 154.16%. This performance provides a broader context beyond the recent 7% stock price increase driven by Watsonx's announcement. IBM's shares have outperformed the US IT industry and the broader market over the last year, with its return far exceeding both benchmarks. While the industry saw less than half of IBM's gain, this underscores investor confidence in IBM's innovations, including the AI labs and collaborations like those with Deutsche Bank. However, the current share price of US$253.37, which exceeds consensus analyst fair value estimates, raises questions about future growth sustainability if market conditions change. The price target reflects a 4% discount to its recent market valuation. The Watsonx AI Labs could further enhance revenue and earnings forecasts by boosting IBM's AI and consulting offerings. Yet, IBM's reliance on economic stability and cloud adoption highlights potential vulnerabilities, as indicated by the range in analyst price targets. The integration of AI and hybrid cloud services aims to mitigate these risks. Still, the consensus fair value of US$252.27 suggests that market expectations may already encompass some of these anticipated benefits. As IBM presses forward with its strategic initiatives, ongoing evaluations of these factors will be crucial for potential investors. According our valuation report, there's an indication that International Business Machines' share price might be on the expensive side. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:IBM. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
4 days ago
- Business
- Yahoo
IBM acquires data analysis startup Seek AI, opens AI accelerator in NYC
IBM on Monday said that it has acquired Seek AI, an AI platform that allows users to ask questions about enterprise data using natural language, for an undisclosed sum. Seek CEO and founder Sarah Nagy said that the startup's technology will be a key part of Watsonx AI Labs, IBM's new NYC-based AI accelerator, which IBM also announced today. "[W]e'll scale our platform, deploy mission-critical solutions for IBM clients, empower the next generation of AI developers, and grow our team significantly," wrote Nagy in a LinkedIn post. IBM's acquisition of Seek comes as the former looks to grow its investments in AI, particularly AI for the enterprise. It's a strategy that's worked well for IBM so far. The tech giant's Q1 earnings beat estimates, driven by software growth and strong AI demand. NYC-based Seek, which Nagy founded in 2021, offers an array of tools designed to help businesses better leverage their data. The company's software allows users to interact with data using a chatbot-like interface, automatically translating natural language questions into database queries and performing high-level data analysis and summarization. Prior to its exit, Seek AI managed to raise around $10 million from investors including Battery Ventures, Conviction Partners, and NJP Ventures. The startup will move its headquarters to One Madison, the location of Watsonx AI Labs and IBM's new Manhattan offices, once the deal closes. "[W]atsonx AI Labs is where the best AI developers gain access to world-class engineers and resources and build new businesses and applications," IBM GM of Data and AI Ritika Gunnar said in a statement. "By anchoring this mission in New York City, we are investing in a diverse, world‑class talent pool and a vibrant community whose innovations have long shaped the tech landscape." In a press release, IBM said that Watsonx AI Labs will bring together IBM researchers and engineers in a "collaborative hub" to build AI solutions for companies. Watsonx AI Labs will also seek collaborations with local colleges and research institutions. Startups that successfully launch products at the accelerator will have access to IBM resources as well as potential investment from the company's corporate VC wing, IBM Ventures, and its $500 million enterprise AI fund. This article originally appeared on TechCrunch at
