IBM (IBM) and AI chipmaker Advanced Micro Devices (AMD) said Tuesday they were teaming up to develop "quantum-centric supercomputing."
IBM's transformation to hybrid cloud, AI, and software has driven higher margins and profitability, making the recent share price retracement a buying opportunity. Strategic acquisitions and product innovation, especially in generative AI and hybrid cloud, have positioned IBM for continued top and bottom line growth. Despite risks from competition and a flat consulting segment, IBM's strong free cash flow, dividend history, and undervalued multiples offer upside potential.
Since one historic American technology company, Intel ( INTC ), made big news last week, I wanted to profile another stalwart I've been cheering for. International Business Machines ( IBM ) is currently a Zacks #2 Rank because earnings estimates continue to trend higher, with $12 EPS projected for next year and nearly $13 for 2027.
IBM's watsonx platform, AI-driven automation and strategic AI partnerships aim to boost productivity and fuel enterprise transformation.
The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. International Business Machines (NYSE:IBM) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
Arista's strong revenue momentum and IBM's hybrid cloud push set up a close race, but ANET shows a sharper growth edge in 2025.
Zacks.com users have recently been watching IBM (IBM) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
IBM (NYSE:IBM) stock has declined 15% over the past month, lagging the S&P 500, which rose 2% over the same period. The slide largely reflects the latest quarterly report, where software segment sales came in below expectations.
IBM's 23% rally rides on hybrid cloud and AI momentum, with watsonx and NVIDIA partnerships fueling growth prospects.
Cisco looks to be correcting after dropping 4.5% on Friday, August 15th, and 7.75% last week, which will give investors another chance to buy the stock in a lower-risk area or add more to the name. EPS was guided to $4.00-4.06 (actual consensus this weekend is $4.04), while revenue guidance for Q1 '26 was $14.45-14.65 billion, with the actual revenue consensus estimate this weekend of $14.76 billion, or an estimate that is above the guided range already. In secular bull markets, particularly as they age, you want underperforming stocks and you want some uncorrelated stocks to the secular bull. Cisco fits that description today; the stock is a 6-8% EPS grower and 5% revenue grower in a technology market hyper-focused on AI and the AI build-out.
IBM's recent stock price decline is due to the underperformance of its software segment and, in my opinion, unfavorable comparisons with faster-growing tech giants like Microsoft and Google. I believe comparing IBM to these premium competitors is misguided, due to IBM's diversified business model and focus on corporate clients. IBM's Software segment, especially Hybrid Cloud and AI, is the primary growth driver, delivering strong margins.
Tech giant International Business Machines Corp NYSE: IBM is back on our radars after a bruising few weeks. Having traded as high as $295 earlier this summer, shares are now hovering just above the $250 level.