Analyst Explains Why She’s Buying International Business Machines (IBM), Says Stock Will Be ‘Much Higher a Year From Now’

We recently published Top 10 Trending Stocks to Watch Ahead of Nvidia Earnings. International Business Machines is one of the top trending stocks to watch ahead of Nvidia earnings.

Analyst Explains Why She’s Buying International Business Machines (IBM), Says Stock Will Be ‘Much Higher a Year From Now’

Stephanie Link, CIO at Hightower, said in a recent program on CNBC that she’s buying International Business Machines shares as she believes in the company’s AI story. She praised the company’s latest quarterly results and said the dip in the stock price was a “gift.”

“Arvind (IBM CEO) did deliver on the growth on the turnaround because he had total revenue growth of 18%, earnings growth of 15%, operating margins of 320 basis points, gross margins of 230 basis points, free cash flow grew 9%. Consulting was fine and better than Accenture and I’ve said that I think they’re taking share. I absolutely think that’s the case. Infrastructure helped by mainframe. I know people don’t pay for that as much because it’s a very cyclical business, but still up 12% in infrastructure. It was software that decelerated that people were nervous about. But I look at Red Hat and I look at the double-digit bookings that they have and the fact that it accelerated to 12% growth. I’m not alarmed at all at the software slowing down from 6 to 3 and a half%. I think down 10% was a gift. I think this is going to be much higher a year from now.”

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This article is originally published at Insider Monkey.