IBM Leans on AI, Acquisitions, and Partnerships to Drive Growth

International Business Machines Corporation (NYSE:IBM) is included among the 13 Top Tech Stocks Paying Consistent Dividends.

IBM has been moving connected AI for decades. That agelong crippled is starting to amusement up successful the stock. Shares are up astir 38% truthful acold this year.

To support pushing its AI strategy, International Business Machines Corporation (NYSE:IBM) has leaned into acquisitions. One of the adjacent deals connected the database is Cognitus. At archetypal glance, it doesn’t shriek AI. Cognitus focuses connected endeavor assets planning, chiefly wrong the SAP ecosystem. However, arsenic much companies bring AI into mundane operations, tying those tools into ERP systems matters. Cognitus helps marque that connection, and that fits neatly into IBM’s broader plan.

The numbers besides backmost it up. In the 3rd quarter, IBM’s bundle segment, which includes its AI products, posted gross of $7.2 billion, up 10% from a twelvemonth earlier.

That said, Cognitus unsocial won’t reshape International Business Machines Corporation (NYSE:IBM)’s AI concern overnight. It works much arsenic a supporting piece. The bigger assistance comes from IBM’s pending acquisition of Confluent, announced connected December 8. Confluent strengthens IBM’s real-time information capabilities, and that caught Wall Street’s attention. Wedbush called the woody a “strong move.” That makes consciousness arsenic AI runs connected monolithic amounts of data, pulled from galore antithetic systems. Cleaning it up and moving it successful existent clip is often the hard part. Confluent helps lick that problem, and it makes IBM’s wide tech stack much cohesive.

International Business Machines Corporation (NYSE:IBM) has besides been gathering done partnerships. The institution precocious teamed up with AI startup Anthropic. Under the agreement, IBM volition integrate Anthropic’s AI models into its software, giving customers much tools to enactment with arsenic AI usage continues to spread.

While we admit the imaginable of IBM arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 12 Best Long Term US Stocks to Buy Now and 12 Best Dogs of the Dow to Invest in.

Disclosure: None.