From Nasdaq:

In December 2011, IBM’s market cap briefly exceeded Microsoft’s at $210 billion, but today those values stand at $168 billion and $3.04 trillion, respectively. IBM lagged in the cloud tech race, divesting weak segments, while Microsoft saw explosive growth in Azure and cloud-based services. These strategic choices have determined their respective trajectories.

Since IBM’s new CEO took over in 2020, the company released struggling operations, invested more in the cloud and AI, and streamlined spending. It also aims to see a mid-single-digit revenue growth by 2024 and is replacing human employees with AI tools. With these changes, IBM experienced a 6% rise in revenue in 2022 and a 2% increase in 2023, while analysts predict 3% growth in 2024.

IBM is on the right path with impressive numbers, a low dividend payout, and a solid forward yield, leading to a > 30% stock rally in the past year. Despite not rivaling Microsoft and doubling its EPS would be a tough task, IBM’s strengths make it an attractive investment. If growth continues, the stock stands to double by 2030.



Read more: Will IBM Be a Trillion-Dollar Stock by 2030?