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IBM Designs AI-Powered Project for Nedgia, But Erste Group Remains Concerned

International Business Machines Corporation (NYSE:IBM) is one of the 10 Best AI Software Stocks to Buy Now. On July 14, International Business Machines Corporation (NYSE:IBM) reported that it had designed and implemented a digital evolution project for Nedgia.

Nedgia is a gas distributor of the Naturgy Group. IBM designed the digital evolution project that uses generative AI agents. The project creates an innovative contact center supported by virtual agents and is a cutting-edge application of generative AI. This solution strengthens customer service by integrating digital agents into the company’s standard telephone and digital customer service channels.

JuliusKielaitis / Shutterstock.com

IBM’s digital solution allows Nedgia to replicate and scale automation use cases to resolve most interactions. The automation process includes services such as appointment management for periodic inspections and access to meter reading information. In the future, the solution will also offer the ability to modify supply data points. All these solutions will allow customers to manage their appointments automatically.

While IBM continues to serve in AI technology, Hans Engel from Erste Group sees IBM’s trouble with its revenue growth as a contest of broader sector technology performance. On August 14, Engel downgraded IBM from Buy to Hold. Engel has shown concern about the company’s current P/E ratio, which it considers high given the company’s growth outlook. The company’s 2025 forecast reflects moderate revenue growth of almost 5% from a year ago, while the P/E ratio of the stock is high in view of the below-average growth prospects.

International Business Machines Corporation (NYSE:IBM) offers integrated services and solutions to enterprises. The company is a leading provider of global hybrid cloud and AI, and consulting expertise.

While we acknowledge the potential of IBM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than IBM and that has 100x 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.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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:

A few years from now, you’ll wish you’d owned this stock.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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