15 AI Stocks That Could Break the Trillion Dollar Barrier

Page 7 of 10

9. International Business Machines Corporation (NYSE:IBM)

Market Capitalization as of April 20: $235 Billion

Next Year Revenue Growth: 6%

Next Year EBITDA Growth: 10%

International Business Machines Corporation (NYSE:IBM) has grabbed focus on Wall Street amid a transition from predictive to agentic AI. The market recognizes IBM’s ability to integrate complex multi-agent systems into existing enterprise workflows without disrupting mission-critical operations. Smart investors view IBM’s watsonx not just as a chatbot, but as a critical governance and development platform for enterprises. The recent FedRAMP authorization of 11 IBM software solutions (including watsonx) is seen as a major catalyst for capturing lucrative government and regulated-industry contracts. The rapid scaling of IBM’s AI offerings is grabbing headlines as well. In its January 2026 earnings report, IBM revealed that its generative AI book of business now stands at more than $12.5 billion, a massive leap from roughly $1 billion a year prior.

READ ALSO: 10 Best Stocks to Buy According to Billionaire Rob Citrone.

International Business Machines Corporation (NYSE:IBM) is focusing on the software side of the business as well. The software revenue of the firm grew 14% in Q4 2025, driven by hybrid cloud and data automation. Institutions are particularly bullish on Red Hat, which continues to see double-digit growth as the foundation for multi-cloud environments. The infrastructure segment saw a 21% surge in early 2026, fueled by the rapid adoption of the next-generation IBM Z mainframe. The firm has guided for a $1 billion year-over-year increase in free cash flow for 2026, targeting approximately $15.7 billion for the full year. It also recently increased its quarterly dividend to $1.68 per share. Having paid consecutive dividends since 1916, IBM is viewed as a defensive growth play, providing AI upside while protecting capital.

Page 7 of 10