Positive.

From Nasdaq: 2024-11-28 08:51:00

Technology veteran IBM (NYSE: IBM) has seen its stock soar by more than 45% over the past year, driven by the growing demand for artificial intelligence (AI) experts. The company’s watsonx platform, focusing on generative AI, has already generated $3 billion in orders, with a $1 billion jump in the third quarter of 2024.

IBM’s focus on generative AI and consulting services has positioned it as a leader in the AI sector, with significant growth potential in the coming years. While other AI specialists like Nvidia and Palantir have seen higher returns, IBM’s long-term strategy and expertise make it a solid investment choice.

Despite IBM’s strong growth prospects, the stock remains undervalued, trading at just 3.4 times sales and 17 times free cash flows. With the potential for significant upside, now could be a great time to consider investing in IBM stock.

The Motley Fool Stock Advisor team has identified 10 top stocks for investors to buy now, but IBM wasn’t one of them. However, past recommendations like Nvidia have delivered substantial returns. Stock Advisor offers guidance on building a successful portfolio, with the service outperforming the S&P 500 since 2002.

Overall, IBM’s focus on generative AI and consulting services, coupled with its undervalued stock price, make it an attractive investment opportunity with strong long-term growth potential. Investors looking for exposure to the booming AI sector may want to consider adding IBM to their portfolios.



Read more at Nasdaq: Is IBM Stock a Buy?