Jessica Inskip Explains AI Growth Catalysts for IBM Stock

Jessica Inskip from StockBrokers.com recently said while talking to Schwab Network that she likes International Business Machines (NYSE:IBM) because of the company’s growth catalysts related to enterprise and AI.

“I’ve liked IBM for quite some time because it’s an enterprise solution that offers consulting but also a lot of technology solutions for enterprises. And that’s really important as we think about AI. We want to see our investors—really, the market wants to see that—translate into earnings, and IBM is the leader in that and the beginner of that.”

Inskip also talked about a recent bullish call on IBM Common Stock (NYSE:IBM) from Wall Street:

“On top of that, the headline that caught my attention today was that with Deutsche Bank, where they were praising IBM for helping to modernize and strengthen their infrastructure. That IBM had a very large role in their large-scale digital transformation. And on top of that, AI plus cloud tailwinds. So if we think about the needs for AI, if you’re a company and you’re not on the cloud, that’s step one in order for you to access AI and start getting those types of solutions. IBM is a solution for you. So with growing exposure to cloud migration and AI, IBM’s positioned for that. They are absolutely going to capture that, and it’s an essential enterprise infrastructure for AI but also blockchain and cloud.”

Photo by Ruben Sukatendel on Unsplash

As of the end of Q4, IBM’s AI products and services surpassed $5 billion in total bookings, with $2 billion added just since last quarter. Last year, IBM updated its Granite family of AI models for enterprise use, making them about 90% more cost-efficient than large models. RedHat is also key in IBM’s open-source GenAI strategy. Management highlighted that RHEL AI and OpenShift AI platforms are gaining traction, along with IBM’s watsonx AI solutions. The company expects its software business to grow by at least 10% in 2025, up from 8.3% growth in 2024.

While we acknowledge the potential of IBM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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