- The AI frenzy sparked by OpenAI’s ChatGPT in 2022 continues to grow, with projections suggesting worldwide AI investment could reach $4 trillion by 2030, driven by businesses rushing to commercialize the technology.
- Concerns of an AI bubble akin to the dot-com craze are rising as big tech companies accumulate debt for AI infrastructure. However, IBM’s CEO remains unfazed, citing meaningful strides in AI and hybrid cloud, as the company sees its stock surge 40.19% this year.
- IBM reported impressive Q3 earnings, with revenue up 9% year-over-year and net income significantly improved. The company’s growth in software, infrastructure, and consulting segments, along with strong cash flow, has fueled its stock momentum and dividend payouts.
- CEO Arvind Krishna dismissed AI bubble fears, highlighting the need for significant capital in the industry and the potential for quantum computing to drive future advancements. Analysts remain positive on IBM stock, with a consensus "Moderate Buy" rating and upside potential.
Read more at Barchart: With Fears Swirling, IBM Says There Is No AI Bubble. Does That Make IBM Stock a Buy Here?