IBM Challenges Nvidia's AI Dominance With New watsonx Platform and Mainframe Modernization
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Nvidia has dominant market share in AI chips, but faces threats as competitors catch up and customers seek alternatives to Nvidia's CUDA software.
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IBM's watsonx AI platform targets enterprise customers who need governance, compliance, and risk management features when adopting AI.
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watsonx Code Assistant can modernize old COBOL code to Java, helping IBM retain mainframe customers.
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IBM stock has rallied 50% recently on optimism about its AI business, but still trades at an attractive 15x free cash flow.
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IBM's diverse business makes it a lower risk way to invest in AI growth compared to a pure-play like Nvidia.