IBM's AI-driven business growth, consulting services, and quantum computing focus make it a buy.

From Nasdaq: 2025-03-26 09:17:00

Investing in IBM (NYSE: IBM) is a smart move with its focus on quantum computing, modest valuation ratios, and a 2.8% dividend yield. IBM’s strength in business-class artificial intelligence (AI) is a key factor that could drive the stock higher in the coming years.

IBM’s Watsonx platform of generative AI tools for corporate clients sets it apart from consumer-facing models. The data flows of Watsonx can be audited, making it a secure and valuable business tool for enterprise-class customers. IBM’s generative AI business has seen rapid growth, with over $5 billion in contracts by the end of the year.

IBM’s consulting services give it an unmatched advantage in the AI space, with 80% of generative AI contracts involving consulting services. This focus on consulting sets IBM apart from competitors like Microsoft, Alphabet, and Amazon. The consulting aspect drives long-term contract values and supports integration services for AI systems.

With over $5 billion in multiyear orders, IBM’s AI-driven business is just beginning to show its potential. The company’s AI segment is growing rapidly and could double its valuation while remaining undervalued compared to other tech giants. IBM’s focus on AI makes it a top investment choice for the future.



Read more at Nasdaq: Here’s Why IBM’s AI Growth Makes It a Stock to Buy Now