IBM’s stock soared 12% Thursday on better-than-expected earnings forecasts.
The recovery is the highest in more than a decade, fueled by strong demand for the company’s artificial intelligence (AI) services.
According to reports ReutersBig Blue is thriving on orders from its generative AI division, with orders doubling in the fourth quarter of last year, with the Watsonx platform contributing significantly to forecast revenue growth of 4% to 6% in 2024. ing.
IBM’s expected profit for next year compares favorably with Wall Street expectations of about 3%.
In the company’s report, released on Wednesdayis on top of market forecasts based on order books for the coming months, IBM will also see job cuts, offset by new hires for AI-focused roles.
Competitiveness
Under the leadership of Arvind Krishna, who has served as CEO since April 2020, the $174 billion technology company has focused on software and consulting and is increasingly focused on AI as customers across industries seek AI integration. We have shifted to focusing on timeliness.
Mr. Krishna, who also serves as the company’s chairman, reflected on the fourth quarter’s performance as follows.
“Revenue growth for the year was in line with our expectations and exceeded our free cash flow targets. Based on the strength of our portfolio and proven track record of innovation, we expect 2024 revenue performance to be in the mid-single digits. We expect it to closely match the model. $12 billion with free cash flow. ”
IBM’s stock price rose to $194.93, its highest since June 2013, adding about $19 billion to the company’s market capitalization and giving the stock a year-to-date risk of 18%.
“IBM’s notable strength is its AI consulting arm, which, combined with its increasingly relevant AI software solutions, gives it an advantage over its competitors,” the New York-based fund said. said Mei De, an analyst at management company GlobalX ETF. As of July 2023, $51 billion in assets are being monitored.
Image: IBM/Twitter
