We recently published a list of 10 AI Stocks Getting Wall Street’s Attention Right Now. In this article, we are going to take a look at where International Business Machines Corporation (NYSE:IBM) stands against other AI stocks that are getting Wall Street’s attention right now.
Investors in the artificial intelligence trade have been frantic ever since the tariff frenzy started. Particularly on April 2, dubbed Liberation Day by President Donald Trump, the administration announced sweeping tariffs that led to significant market volatility and a sharp downturn in stock indices.
While the President may strive to make the United States the “world capital” of artificial intelligence, the aggressive trade and tariff moves that have since followed have been threatening the crucial technology and weakening competition with China.
Executives and experts in AI and data center construction have been worried about how trade levies would significantly increase the cost of constructing, equipping, and operating the data centers that will, in turn, power AI development.
READ NEXT: 10 AI Stocks in the News Today and 10 AI Stocks in the Spotlight This Week.
Fast forward to earnings reports from some of the Big Tech, and it can be noted how investors have been worried more than necessary about the AI trade. Meta and Microsoft, in particular, reported strong quarterly results that demonstrated how artificial intelligence progress won’t necessarily slow amid economic turmoil.
“Few stocks are truly immune to Trump tariffs [and] trade war, but AI is a lot less impacted than investors currently believe. We’re early in a very steep growth curve right now, and that goes for AI infrastructure.”
-Jed Ellerbroek, portfolio manager at Argent Capital Management.
What happens next to AI stocks largely depends on what’s next for tariffs. If it’s better than expected, these and other AI stocks may climb and lift valuations. On the other hand, if tariffs seem high, these stocks could fall further.
Nevertheless, strong companies, particularly the likes of Nvidia and Palantir, are likely to win over the longer term due to their smart innovations. According to Wells Fargo’s Christopher Harvey, it may be time for investors to reenter the trade.
“The group’s risk/reward today is much more attractive than a year ago. We remain in a durable AI investment super cycle.”
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A closeup of a woman’s hands typing rapidly on a laptop in a corporate office setting.
International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 60
International Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products. On May 6th, the company announced that it is working with Oracle to bring the power of watsonx, IBM’s flagship portfolio of AI products, to Oracle Cloud Infrastructure (OCI). This move will help the companies to fuel a new era of multi-agentic, AI-driven productivity and efficiency across the enterprise. With AI agents being able to offer a single, easy-to-use interface to complete tasks, IBM’s watsonx Orchestrate AI agent will be available on OCI in July to support multi-agent workflows. Moreover, IBM’s Granite family of AI models will be accessible through OCI Data Science, and IBM Envizi ESG Suite will launch on OCI with an initial release in Saudi Arabia.
“Agents are becoming an important strategic advantage for organizations to optimize operations and deliver better customer and employee experiences. Today’s most advanced agents are able to interact across different systems and processes, unleashing greater productivity and driving wider adoption. The Agentic AI approach IBM is taking with Oracle is a leading example of how the ability to orchestrate agentic workflows across systems can drive significant advantages, streamlining how work gets done and unlocking growth and innovation.”
-Ritu Jyoti, IDC General Manager and Group Vice President.
Overall, IBM ranks 8th on our list of AI stocks that are getting Wall Street’s attention right now. While we acknowledge the 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than IBM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
