IBM has expanded its collaboration with Microsoft to enhance its consulting capabilities, integrating Microsoft’s Copilot with IBM’s AI platform. This allows IBM-certified consultants to access the AI platform from within Microsoft 365 apps, saving 250,000 hours annually. The AI consulting services market is projected to grow by 26.2% between 2025 and 2035, benefiting IBM.

In the third quarter, IBM’s Consulting segment revenue reached $5.32 billion, up from $5.15 billion, driven by growth in various areas. IBM faces competition from Accenture and Infosys in the consulting space. Accenture recently formed a strategic collaboration with Microsoft to accelerate AI adoption, while Infosys is expanding its gen AI portfolio.

IBM stock has surged 37.9% over the past year, with a forward P/E ratio of 24.19. The Zacks Consensus Estimate for IBM’s 2025 earnings has increased. IBM currently carries a Zacks Rank #3 (Hold). The demand for data centers is fueling a digital gold rush, presenting opportunities for semiconductor companies like IBM.

Read more at Nasdaq: IBM Expands AI Consulting Capabilities: Will it Drive Growth?