Analyst Explains Why She ‘Really’ Likes This Defensive AI Dividend Stock

We recently published 10 Trending Stocks This Week. IBM Common Stock (NYSE:IBM) is one of the trending stocks this week.

Jessica Inskip from StockBrokers said in a program on Schwab Network that she “really” likes IBM Common Stock (NYSE:IBM) stock amid the company’s multiple revenue streams and its exposure to AI and tokenization. Inskip also explained what makes IBM Common Stock (NYSE:IBM) a “defensive” play.

“IBM in 2020 actually went through a management change. They’ve shifted a lot of focus and some of that focus was in AI. Now when we think about IBM Common Stock (NYSE:IBM), they are very deeply embedded in enterprise architecture and they have a consulting arm. And when I think about how AI is coming to life and that enterprise architecture, it requires governance and it requires regulatory compliance processes because of the way that the stacks are built and IBM Common Stock (NYSE:IBM) partnerships and they have other ones as well. They don’t compete with those other AI models. They really have, I wouldn’t call it a moat, but they are in the room because when decisions are made because of that consulting arm that they have and they’re already deeply integrated with financial institutions and places that require that really that governance framework. Now on top of that, what I really like about IBM Common Stock (NYSE:IBM) is we are seeing a shift in really market structure with tokenization and IBM has a solution since their 2020 changes where we’re seeing into fruition and I think tokenization and market access is going to be a bigger theme now outside of AI. I like to call it the efficiency rally and IBM Common Stock (NYSE:IBM) is a key component of that. So they have multiple revenue streams that are inclusive of AI, tokenization, and efficiency. And it’s more of a play that can really even take out macro uncertainty because of their recurring enterprise workloads. It makes them a defensive play, yet they have exposure to AI which requires and gives them some room for upside as well. So I really like IBM Common Stock (NYSE:IBM) in this environment.”

While we acknowledge the risk and potential of IBM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IBM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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