IBM saw a 13% increase in shares due to strong Q4 results and growth in AI segment

From Yahoo Finance: 2025-04-08 13:31:00

In the first quarter of 2025, International Business Machines (IBM) saw a 13% rise in shares, outperforming the S&P 500 market index. This increase followed strong fourth-quarter results, with bottom-line earnings beating estimates. IBM’s generative AI segment showed robust growth, leading to long-term deals worth $5 billion by the end of the year.

IBM’s stock surged more than 14% the day after the fourth-quarter results, settling at a 13% gain. Another 5.2% jump came in March when IBM opened a cloud computing research center in Romania in collaboration with Amazon Web Services (AWS). The partnership benefits both companies in the European market.

Despite a slight dip due to tariff concerns, IBM’s stock remains strong, following the S&P 500’s 9% drop in April. Investors have seen a 20% gain in the last year, with IBM offering a 3% dividend yield. The company’s enterprise-focused approach to generative AI tools has proven successful, making IBM an attractive investment option.

The Motley Fool Stock Advisor team did not include IBM in their list of 10 best stocks to buy now. However, their recommendations have historically led to substantial returns, with some stocks generating hundreds of thousands of dollars in profits. The Stock Advisor’s total average return surpasses that of the S&P 500, making it a valuable resource for investors seeking high-performing stocks.



Read more at Yahoo Finance: How IBM Soared 13% While Markets Sank in Q1 2025