Analyst Says IBM (IBM) a ‘Quiet Way’ to Play AI, Quantum

We recently published 10 Most Popular Analyst Calls to Watch This Week. IBM Common Stock (NYSE:IBM) is one of the trending stocks.

Steven Grasso, the CEO of Grasso Global, said in a recent program on CNBC that he likes IBM. Here is what the analyst said:

“IBM Common Stock (NYSE:IBM) is a quiet way to play AI and a quiet way to play quantum. It never gets credit.”

IBM’s generative AI book of business exceeds $7.5 billion, which shows strong demand and client adoption. The company deployed its first Quantum System Two outside the U.S., in Japan, and continues initiatives like watsonx Orchestrate (generative AI and automation solution) and Client Zero to integrate AI into customer operations. Over the past three years, the company has seen strong revenue growth driven by Red Hat, hybrid cloud (OpenShift), automation (Ansible), AI, and security solutions.

However, the stock trades at a forward P/E of 25x, above its historical average of 16x. Its forward EV/EBITDA multiple stands at 17x, also higher than typical market levels.

Photo by Sable Flow on Unsplash

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