IBM Stock Hits 10-Year High on Surging AI Demand Despite Doubts on Long-Term Prospects
-
IBM stock has surged nearly 40% recently, hitting 10-year highs, driven by accelerating demand for its AI offerings like Watson.
-
IBM beat Q4 earnings estimates and issued a strong 2024 forecast, crediting AI demand. It expects mid-single digit revenue growth and $12B in free cash flow.
-
Bullish analysts see IBM helping enterprises implement messy, expensive AI tools with its consulting expertise. Its AI bookings doubled from Q3 to Q4.
-
Skeptics question if IBM can compete long-term in AI with bigger rivals. Its software revenue missed estimates. 2024 guidance may be “ambitious.”
-
IBM stock scores highly on technical measures like composite and relative strength ratings. Management sees corporations investing in tech like AI to address challenges.