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International Business Machines Corporation (IBM) Outperforms with AI-Driven Growth in 2025
International Business Machines Corporation (IBM) Outperforms with AI-Driven Growth in 2025

Yahoo

time4 days ago

  • 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.

International Business Machines Corporation (IBM) Outperforms with AI-Driven Growth in 2025
International Business Machines Corporation (IBM) Outperforms with AI-Driven Growth in 2025

Yahoo

time5 days ago

  • 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

Could IBM Stock Surge Another 16%?
Could IBM Stock Surge Another 16%?

Globe and Mail

time24-06-2025

  • 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

Could IBM Stock Surge Another 16%?
Could IBM Stock Surge Another 16%?

Yahoo

time24-06-2025

  • Business
  • Yahoo

Could IBM Stock Surge Another 16%?

IBM stock has rallied over the past year as consistent growth returned. An analyst sees further gains ahead, driven by AI success. IBM's AI strategy is working, and the company is positioned to thrive as the AI industry matures. 10 stocks we like better than International Business Machines › 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. 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. 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. 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. Before you buy stock in International Business Machines, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Timothy Green has positions in International Business Machines. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool has a disclosure policy. Could IBM Stock Surge Another 16%? was originally published by The Motley Fool

IBM acquires data analysis startup Seek AI, opens AI accelerator in NYC
IBM acquires data analysis startup Seek AI, opens AI accelerator in NYC

TechCrunch

time02-06-2025

  • Business
  • TechCrunch

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.' Techcrunch event Save now through June 4 for TechCrunch Sessions: AI Save $300 on your ticket to TC Sessions: AI—and get 50% off a second. Hear from leaders at OpenAI, Anthropic, Khosla Ventures, and more during a full day of expert insights, hands-on workshops, and high-impact networking. These low-rate deals disappear when the doors open on June 5. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW 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.

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