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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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is 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.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • 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.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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