Latest news with #Power11
Yahoo
3 days ago
- Business
- Yahoo
Dear IBM Stock Fans, Mark Your Calendars for July 25
The artificial intelligence revolution is moving quickly, and this shows in the strong demand for AI hardware. The global AI chip market is expected to reach almost $92 billion in revenue by the end of 2025, driven by constant innovation and the need for faster, more efficient data processing in many industries. International Business Machines (IBM) is well placed in this fast-growing space. The company has delivered solid returns for shareholders, with its stock up over 56% from its 52-week lows. IBM's market capitalization now stands at $263 billion, showing that investors are gaining confidence in its focus on AI and hybrid cloud solutions. The timing of IBM's next move is important. On July 25, just two days after the release of its Q2 2025 earnings report, IBM will introduce its most significant hardware upgrade in years. The company will launch the Power11 server lineup, the first big update to its 'Power' chip architecture since 2020. Palantir Just Launched Warp Speed for Warships. Does That Make PLTR Stock a Buy? This Analyst Just Doubled His Price Target on AMD Stock How High Can Nvidia Stock Go as Jensen Huang Heads to China? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Could this announcement secure IBM's place as a leader in AI infrastructure? And what might it mean for investors looking ahead to the launch? Let's find out. International Business Machines (IBM) is a well-known name in enterprise technology, building on its long history in hardware with renewed focus on AI, hybrid cloud, and key software solutions for sectors like banking, healthcare, and government. Over the past year, investors have noticed this shift. IBM's stock is up 55% over the last 52 weeks and has gained 29% so far this year. IBM trades at a forward P/E of 25.9x, which is higher than the sector average of 24x. Financial results from the latest quarter show steady progress. Revenue came in at $14.5 billion, a 1% increase from last year, with software growing by 7%. Margins are getting better too, with gross profit at 55.2% (GAAP), up 170 basis points. Together, this puts IBM in a good position as it gets ready to launch the new AI-focused Power11. IBM is moving into its next phase by focusing on AI-powered infrastructure and making sure its systems are reliable for big businesses. The new Power11 servers, coming out on July 25, are a big part of this shift. They are built to run nonstop, with no planned downtime and the ability to spot ransomware threats in less than a minute. These servers are designed for important jobs in banking, healthcare, retail, and government, offering near-constant uptime and flexible options, whether companies want to use them on-site or through IBM Cloud. This is more than just a simple upgrade; it's how IBM is meeting the bigger demands of the AI era. IBM's partnership with DBmaestro adds to its strengths, bringing in advanced tools for database automation, security, and real-time monitoring. This helps businesses manage changes quickly and safely as they move further into digital operations. For investors who care about steady income, IBM stands out. The company offers a 2.4% annual dividend yield, with 30 years of increases and a payout ratio of 57.86%. Compared to the tech sector's average yield of 1.37%, IBM's steady approach to dividends is a key reason many investors continue to trust the company as it moves forward. The company's next earnings report is set for July 23, after the market closes, and there's a lot of anticipation. For the quarter ending June 2025, the average earnings estimate is $2.64 per share, up from $2.43 last year. Second-quarter revenue is expected to come in between $16.40 billion and $16.75 billion. Most analysts are still positive. The 21 surveyed rate IBM as a consensus 'Moderate Buy,' with an average price target of $263.70. The stock is already trading above that, which shows investors are expecting more good news soon, especially with the July 25 product launch coming up. July 25 is shaping up to be a milestone for IBM and its investors, with the Power11 launch promising to push the company further into the AI spotlight. Backed by solid financials, a steady dividend, and growing analyst optimism, even as the stock trades above consensus targets, IBM's next move could set the tone for its future in enterprise tech. For those watching the stock, this is one event you won't want to miss, as it could mark the start of a new era for Big Blue. On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
How IBM Plans to Redefine AI Performance with Its New Hardware
IBM's (NYSE:IBM) latest AI spectacle comes July 25, the company's rolling out its Power11 chips and next-gen serversdesigned to keep your data center humming (no scheduled downtime) and sniff out ransomware in under a minute. It's the first big Power upgrade since 2020's Power10, and it packs a punch: IBM claims up to 55% faster cores than Power9 and about 45% more capacity than Power10 in entry and mid-tier boxes. What's cool is that these new systems will be the first to support IBM's in-house Spyre AI accelerator, so you can run AI inference right alongside your usual hybrid-cloud workloads. As Tom McPherson, IBM's Power Systems GM, put it: they're leveraging the full IBM stack to blend AI, automation and rock-solid security. Why it matters: AI workloads are gobbling up compute cycles, and threats like ransomware aren't taking breaks. A setup that combines serious performance gains with built-in security features could give IBM an edge over the usual x86 servers. No surprise IBM's stock ticked up about 0.5% on the news. If you're planning your next enterprise AI rollout, Power11 might be worth a look. This article first appeared on GuruFocus. Sign in to access your portfolio
Forbes
4 days ago
- Business
- Forbes
IBM Aims To Expand Its Infrastructure Market Reach With Power11
IBM's new Power11 servers aim to address growing modernization needs in the enterprise datacenter, ... More expanding the Power lineup to cover new use cases. IBM recently achieved its highest market cap ever. How did it do this? It comes down to CEO Arvind Krishna's strategy and his team's execution. When Krishna took the reins as CEO, he wanted to have the company lead in 'hybrid cloud and AI.' We all understood the 'hybrid cloud' part on day one (this is where Red Hat came into the picture), but what about AI? IBM followed up shortly with watsonx, the world's first-to-GA end-to-end enterprise generative AI platform. Yes, IBM did this before Azure, AWS or Google Cloud did — and it runs in the cloud and on-prem. Krishna also spun off low-growth services businesses, turning IBM into a product and technology company again and investing where the puck was going. Fit-for-purpose infrastructure is cool now, but IBM has never stopped working on it in areas including Z for mainframe, semiconductor research and quantum computing. In that context, we've recently covered the Z17 launch and weighed in on IBM's quantum roadmap. But what about IBM's Power servers, which we hadn't written about since Patrick Moorhead did in 2021? This is an opportune moment to return to the subject, because IBM launched its new Power11 platforms last week to address growing modernization needs in the enterprise datacenter. While the Power platform has traditionally been considered mainframe-adjacent, Power11 is the company's attempt to expand the product line's target deployment scenarios and use cases. How might IBM use Power11 to address an expanded market opportunity? And what will IBM need to do to be successful as it makes a play beyond what some would consider the mainframe-adjacent market? (Note: IBM is an advisory client of our firm, Moor Insights & Strategy.) The Great Data Convergence In Enterprise IT As analysts who often confer with leaders from both enterprise IT and lines of business, we tend to notice a disconnect between the two groups. While business leaders understand that activating AI is a significant effort, their understanding tends to be abstract. Meanwhile, it's the IT leaders who must deal with the real and complex challenges of integrating technology stacks and, more importantly, data. Further complicating this challenge, historical data that adds context to large language models often exists on platforms that have been powering the largest enterprises for decades. More specifically for our context here, this data often sits on 'big iron' IBM Power servers that were originally designed with data in mind. IT leaders understand the importance of using this data to add texture and deliver more accurate intelligence with AI. IBM Power has built a reputation over the years for the highest levels of performance, scale, reliability and security. That reputation is well deserved, because Power is the compute engine for some of the most mission-critical workloads in the most regulated industries: large-scale database, transactional and ERP workloads. This is the bread and butter of the enterprise. Stability Meets Distributed Computing In Power11 It's with this backdrop in mind that we come to Power11. While still emphasizing performance, reliability and security, Power11 has expanded in scope to address a larger segment of the enterprise datacenter market. By combining Power-based systems with IBM's Red Hat portfolio (OpenShift, RHEL) and watsonx, these big-iron platforms now deliver a highly performant hybrid cloud environment made for modern workloads such as AI and SAP HANA in addition to the traditional workloads. IBM positions Power11 as supporting a range of deployment scenarios across the enterprise. IBM has delivered a portfolio of Power11 systems that spans many deployment scenarios in the enterprise: For those unfamiliar with the Power portfolio, it's worth pointing out a few things. First, trying to compare an IBM Power processor and core with an x86 offering such as EPYC from AMD or Xeon from Intel is like comparing apples and oranges. IBM designs its RISC-based Power processors for absolute performance and sustained high utilization. Whereas an x86 CPU will operate most efficiently in the 40% utilization range, Power is designed for efficiency at upwards of 80% utilization. The same kind of design approach extends across Power's security, reliability and power efficiency. While EPYC and Xeon also address these aspects, the Power architecture is seemingly almost maniacal about them. This is why IBM touts its 'six nines' of availability and can point to differentiating features such as quantum-safe encryption built into the firmware of Power11 systems. On top of this, Power systems are designed and built as fully integrated stacks. The silicon is fully leveraged in hardware. And the hardware is fully leveraged in firmware and the operating system. This is what enables the highest levels of reliability and performance. For native AI support, IBM has embedded its Vector Scalar Matrix Engine v2. This is a similar approach to what Intel has been offering in its Xeon CPU for the last few generations — dedicated silicon 'engines' to offload CPU functions that are not performed as efficiently by the CPU. These accelerator engines have proven to deliver significant lift, specifically for inference. Finally, when IBM's dedicated AI accelerator, Spyre, is available later this year, customers will be able to order it included in Power systems. Power11 truly does combine the best of the traditional big-iron platforms that IBM has been designing for decades with the flexibility of the distributed x86 platforms that support today's hybrid cloud and virtualized environments. IBM's TAM Expansion Opportunity — And Challenges With all of this in mind, it's worth exploring IBM's market play in more detail. As touched on earlier, under Arvind Krishna IBM looks at the evolution of the datacenter toward data-centric and cloud-native technologies. And in the case of the Power portfolio, the company sees an opportunity to increase its total addressable market significantly. Whereas Power10 focused squarely on a big-iron space that IBM has dominated for quite some time, the Power11 architecture aligns nicely with these new IT market shifts — and with the work IBM has done in recent years with its Red Hat portfolio and watsonx platform. The implications of this could be quite large; whereas the traditional TAM for Power servers running IBM's AIX or IBM i operating systems is estimated at $2 billion, adding new markets for hybrid as-a-service, modernization and SAP HANA use cases brings the TAM to $47 billion. To be clear, we don't think that IBM plans to grow Power's market share by such an exponential amount. But it does demonstrate that Power11 could compete in some very rich market spaces — from which it was previously excluded. So, can IBM effectively compete across the four pillars of as-a-service, modernization, SAP HANA and its core AIX/IBM i business? We think the answer is yes, though the details are important. For example, we don't expect IBM to start replacing traditional distributed computing solutions such as Nutanix and Dell for modernization projects. However, for IT shops already using IBM Z or LinuxONE, going with Power11 could be a very compelling option instead of using Nutanix, Dell or other vendors. Its performance-per-watt advantage (which IBM says is about twice that of x86-based servers), combined with its deep security and reliability, makes the discussion of upgrading to the latest x86 server versus deploying Power11 very interesting. Overall, the integration story is good. Leveraging Red Hat Enterprise Linux and OpenShift to deliver a cloud environment presents a platform and tooling familiar to IT administrators who are not otherwise familiar with Power. Now, it's not so much about making a change to a Power server — it's simply adopting a high-performing IBM cloud platform. Keys To Success For Power11 We believe Power11 offers a compelling value proposition for the enterprise, and that it does open up an expanded TAM for IBM. That said, the company will be challenged to cut through the noise, even in current customer datacenters. In these environments, teams focused on distributed computing tend to be separate from those using Z or LinuxONE. Further, IBM has done a strong job of servicing its install base and building a strong but very tightly focused brand for Power. This brand will need to be deconstructed a bit through education and amplification to reach the broader audience that IBM is aiming for. The road from $2 billion to $47 billion is long. However, in some ways, the transition from supporting large databases and big-iron workloads to hybrid cloud environments is even more daunting. As IBM looks to expand its footprint, it would be well served to play the long game. As previously mentioned, Power11 will not completely replace x86 across the enterprise today or tomorrow. However, there are cases where Power11 is a more logical choice based on where a workload is hosted, its integration with existing IBM systems or the desire to use Red Hat or watsonx to activate generative or agentic AI. From these adjacent IBM use cases, the company should be able to expand its coverage to environments that are perhaps less directly aligned with traditional IBM coverage areas. Another area that IBM product marketing could focus on is adjacent workloads that have been running in VMware environments for the last decade or so. The disruption introduced by Broadcom's acquisition of VMware two years ago has led to many VMware customers looking for alternatives. We believe there's an OpenShift/L1124 or E1150 proof of concept waiting for these customers. There are undoubtedly countless other campaigns IBM can initiate to drive interest that supports its TAM expansion. But the key is to execute this effort in smaller, manageable chunks, focusing on the lowest-hanging fruit first to build momentum. Could IBM Disrupt The Datacenter Server Market? IBM's launch of Power11 is potentially disruptive. By combining the extreme automation and reliability of the Power platform with the scale-out capabilities of distributed computing environments, it has the chance to significantly increase IBM's footprint in the enterprise datacenter by enabling modernization efforts anchored in a hybrid cloud architecture. However, potential means nothing without execution. The path to expanding the enterprise datacenter footprint requires highly concentrated go-to-market efforts around awareness and education. Strangely enough, building Power11 was, in some ways, the easy part. We'll check in over the next few quarters to see how Power11 adoption is shaping up.
Yahoo
6 days ago
- Business
- Yahoo
IBM Launches Power11 Servers—Targeting the Future of AI and Hybrid Cloud
International Business Machines Corporation (NYSE:) is one of the . On July 8, the company announced a new lineup of data center chips and servers. The IBM Power11 is the next generation of IBM Power servers, redesigned with innovations to deliver speed, reliability, and flexibility that businesses need for seamless hybrid deployment on-premises or in the IBM Cloud. The move marks IBM's first major update to its 'Power' line of chips since 2020. These Power systems are designed to deliver simplified, always-on operations with hybrid cloud flexibility, enabling businesses to maintain competitiveness in the AI race. Offering 99.9999% of uptime, zero planned downtime for system maintenance, and less than one-minute guaranteed ransomware threat detection, the Power11 is a resilient solution that delivers unique value and offers greater business continuity. The Power systems will be available from July 25 and will not require any planned downtime for software updates. Moreover, their unplanned downtime each year averages just over 30 seconds. The company intends to integrate Power11 with Spyre, its AI chip, in the fourth quarter of this year. 'IBM Power11 changes the game for enterprise computing. With Power11, clients can accelerate into the AI era with innovations tailored to their most pressing business needs. We are taking advantage of the full IBM stack to deliver hybrid cloud, AI, and automation capabilities while building on our decades-long reputation as a trustworthy hybrid infrastructure for essential workloads.' -Tom McPherson, GM, Power Systems at IBM. International 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. 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
Time of India
11-07-2025
- Business
- Time of India
IBM does not aim to compete with Nvidia in helping create and train AI systems, but is ..., says Tom McPherson, GM of Power systems, IBM
IBM recently launched its new Power11 line of data center chips and servers, marking a significant leap in power efficiency and the simplification of artificial intelligence (AI) deployment within business operations. Tired of too many ads? go ad free now This update, the first major refresh to its "Power" chip line since 2020, positions IBM to compete more aggressively in the specialized data center market. Traditionally, IBM's Power chips have been a strong contender against offerings from Intel and Advanced Micro Devices (AMD), particularly in demanding sectors such as financial services, manufacturing, and healthcare. Similar to Nvidia's AI servers, IBM's Power systems are an integrated solution, combining both powerful chips and sophisticated software. This tight integration, Tom McPherson, General Manager of Power Systems at IBM, told Reuters, has allowed the company to prioritise unparalleled reliability and robust security. IBM is not competing with Nvidia McPherson clarified that IBM's strategy isn't to directly compete with Nvidia in the realm of creating and training AI systems. Instead, Big Blue is sharply focused on streamlining AI deployment for inference – the crucial process of putting an AI system to work to accelerate business tasks. "We can integrate AI capabilities seamlessly into this for inference acceleration and help their business process improvements," McPherson reportedly said in an interview, referring to work with early customers. He, as per the Reuters report, added, "It's not going to have all the horsepower for training or anything, but it's going to have really good inferencing capabilities that are simple to integrate." A key highlight of the new Power11 systems, which will be available starting July 25, is their exceptional uptime. Tired of too many ads? go ad free now IBM claims these systems will require no planned downtime for software updates, and their average unplanned downtime each year will be a mere 30 seconds. Furthermore, the Power11 systems are engineered to detect and respond to a ransomware attack within a minute, offering a critical defense against increasingly sophisticated cyber threats. Looking ahead, IBM plans to integrate the Power11 with Spyre, its AI chip introduced last year, in the fourth quarter of 2025. "We can integrate AI capabilities seamlessly into this for inference acceleration and help their business process improvements," McPherson stated in a recent interview, referencing collaborations with early customers. He emphasized the system's ability to deliver "really good inferencing capabilities that are simple to integrate," even if it doesn't boast the same horsepower as training-focused systems. This strategic focus on simplifying AI for practical business applications could prove to be a significant advantage for IBM in the evolving data center landscape.
