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AI Revolution Continues To Shape IBM’s (IBM) Future

IBM’s stock is up 20% in the last seven months. Astonishingly, those who regard IBM as a pure AI giant do not see this trend. IBM, despite being a tech giant, isn’t considered the most innovative one. This is one reason why its AI achievements go under the radar. We believe investors shouldn’t ignore IBM as an AI play and that it holds potential.

IBM, formally known as International Business Machines Corporation, is still among the top players in the world as far as information technology is concerned. The company’s portfolio consists of cloud computing, artificial intelligence, data analytics, and advisory services. The enterprise, which is anchored in New York as one of the biggest industrial organizations in the world, has all the traits that are necessary to perform large-scale research based on innovation just like the development of quantum computing.

IBM’s top products are IBM Cloud, IBM Watson, data management, software, cybersecurity services, and enterprise consulting. Sales of software, cloud subscriptions, consulting services, and hardware make up the majority of the revenue.

From large companies to small operations, including telecommunications, finance, healthcare, government, and production, IBM serves a broad clientele. Its end market is organizations looking for next-generation technology solutions to improve the efficiency of their operations, digitalize their processes, and store and manage big data.

IBM is attempting to leverage its relationship with AMD and AWS to carve out a niche as a dominant player in the AI arena. The GPU upgrade along with a special version of large language models (LLMs) will make its 2025 roadmap even more robust. As a result of these partnerships, the company is well on its way to becoming an important player in the AI world.

Shifting focus towards open-source AI models is a game-changer for the company. As these models continue to grow, they are increasingly becoming empowering tools for businesses like IBM. Similarly, its Global Business Services division is equally contributing to the integration of AI solutions, enabling companies to yield incredible results.

We are bullish on IBM. With strategic shifts towards AI integration, alongside strong partnerships and a focus on open-source innovation, IBM is in a great position to capitalize on the AI boom. With a breakout year promised in 2025, IBM is the AI stock to watch out for.

IBM is not on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held IBM at the end of the third quarter which was 54 in the previous quarter. While we acknowledge the potential of IBM as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as IBM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. This article was originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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