International Business Machines Corporation (NYSE:IBM) is one of the Must-Watch AI Stocks on Wall Street. On December 5, Erste Group upgraded the stock from Hold to “Buy” following robust third-quarter performance and improved financial guidance. The improved financial outlook for IBM, together with Red Hat momentum, support the rating upgrade.
“Following the good Q3 results, IBM management has raised its financial guidance for the full year 2025. The company now expects revenue growth of more than 5%. The expectation for free cash flow for the full year has also been raised to around USD 14 billion.”
IBM’s software segment is also likely to continue gaining importance in the future, supported by Red Hat products. Analysts anticipate IBM to achieve a higher increase in sales next year than this year.
“The share should benefit from the Group’s positive outlook and achieve further price gains.”
International Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products.
While we acknowledge the potential of IBM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
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