IBM Bets on AI and Cloud Consulting to Drive Future Growth

IBM has decades of experience with AI, including its Jeopardy-winning Watson system, but struggled to commercialize the technology.

IBM recently launched a new watsonx platform to help enterprises build and deploy AI models while maintaining data control.

AI presents a major opportunity for IBM's consulting business, expected to generate $1B in 2024 and $2B in 2025.

IBM's software revenue growth may lag but its broad portfolio should deliver stable growth long-term.

With strong cash flow and an attractive valuation, IBM stock offers a nice dividend yield and upside potential.