10 AI Stocks on Market Radar

8. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 66

International Business Machines Corporation (NYSE:IBM) is one of the 10 AI Stocks on Market Radar.  On January 20, Evercore ISI analyst Amit Daryanani raised the price target on the stock to $330 from $315 and kept an Outperform rating. The firm also added IBM to its “Tactical Outperform list” ahead of IBM’s December-end quarterly results due on Wednesday, January 28.

Evercore ISI expects IBM to deliver in-line to slightly better-than-expected Q4 results, driven by Infrastructure strength and improvement in Consulting. Meanwhile, the outlook for Software appears de-risked even though Red Hat’s growth has been moderating.

The firm believes IBM’s ongoing cost-saving initiatives, which are anticipated to reach $4.5 billion in gross run-rate savings by 2025, support margin expansion and EPS upside in Q4.

Looking ahead, it also expects IBM to provide formal guidance for CY26, a key area of focus for investors. It forecasts that the company will initially guide to growth at the lower end of its mid-single-digit target range and to about $15 billion in free cash flow.

Besides guidance, investors will also be looking for updates on AI bookings, CFLT acquisition, quantum computing, and the trajectory of Software and Consulting growth.

Aside from guidance, investors will also look for updates on: 1) AI: Bookings/revenue disclosures + expectations for contribution to growth for 2026, 2) CFLT details: Overall strategy/integration with IBM’s software portfolio, initial dilution (should be mostly mitigated by ongoing cost savings) revenue/cost synergy opportunities, & accretion, 3) Quantum Computing: Progress on achieving the next milestones (quantum advantage by 2026, error corrected computer by 2028) and potential revenue opportunity, 4) Software growth trajectory for 2026, 5) Consulting signings + drivers of inflection in 2026, and 6) Updates on cost savings initiatives. Maintain OP and raising target to $330 to reflect favorable earnings setup.

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.