IBM and Amazon are key players in the cloud computing industry, offering a range of solutions for enterprises. IBM focuses on hybrid cloud and AI, collaborating with NVIDIA to enhance AI applications. Amazon’s AWS platform offers over 200 services, with a strong emphasis on databases and AI capabilities. Both companies face competition but have strong growth prospects.

IBM is expected to benefit from hybrid cloud and AI trends, with a focus on analytics and security. The company’s collaboration with NVIDIA aims to enhance AI capabilities, with a new content-aware storage feature for its hybrid cloud infrastructure. Despite competition and pricing pressure, IBM’s long-term growth potential remains strong.

Amazon leads in cloud infrastructure services, with AWS serving a wide range of enterprise customers. The company’s Bedrock platform offers access to top AI models, with investments in custom AI silicon for improved performance. While facing capacity constraints and regulatory challenges, Amazon’s AI and ML capabilities continue to expand, driving growth in cloud services.

Zacks estimates show positive growth trends for both IBM and Amazon, with IBM expecting 5.5% sales growth and Amazon projecting 8.9% growth by 2025. IBM’s valuation appears more attractive than Amazon’s, with lower forward earnings. However, Amazon’s steady revenue and EPS growth, along with a strong VGM Score, position it as a favorable investment choice over IBM in the current market.

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Read more at NASDAQ: IBM vs. Amazon: Which Cloud Infrastructure Stock Offers More Upside?