Can IBM's AI Investments Secure Future Market Leadership?

International Business Machines Corporation (IBM) and Pearson have teamed up to create AI-powered learning tools for individuals and organizations worldwide. The collaboration will help IBM expand its AI applications into education, strengthening its presence in the learning technology market for future growth.IBM recently launched a $500 million venture fund to invest in early-stage AI companies. The company has strengthened its AI portfolio through its WatsonX platform to deliver secure, scalable, and trustworthy AI solutions that help enterprises build, deploy, and manage AI responsibly across hybrid cloud environments. IBM uses a hybrid-cloud approach with Red Hat OpenShift, allowing enterprises to implement AI across on-premises and cloud environments, making its solutions ideal for regulated industries.IBM’s recent deal with Confluent, Inc. (CFLT) strengthens its AI portfolio by providing real-time, reliable data streaming that supports enterprise AI and generative AI applications. IBM also collaborated with SAP to utilize generative AI and IBM Garage methodology to help retail and consumer-goods companies improve productivity, optimize distribution, and accelerate digital transformation.Per a report from Precedence Research, the global AI market is expected to grow rapidly in the future, reaching nearly $3,680 billion by 2034 at a CAGR of 19.20% due to rising adoption across industries. By investing in R&D, hybrid cloud, partnerships, and enterprise expertise, IBM is positioning itself as a long-term leader in the AI market.How Are Competitors Advancing in the Competitive AI Market?IBM faces competition from Microsoft Corporation (MSFT) and Amazon.com, Inc. (AMZN). Amazon Web Services (“AWS”) introduced a range of new AI tools and services, including advanced model customization, new AI agent capabilities, and expanded infrastructure offerings to help businesses build and scale AI applications. AWS recently introduced new features in Amazon Bedrock and Amazon SageMaker AI to make AI model customization easier using reinforcement learning. Amazon is investing millions in AI education and skills training globally.Companies like KPMG are using Microsoft’s AI, including Azure AI and Copilot, to improve workflows and boost employee productivity. Microsoft and the National 4-H Council extended their $10 million partnership to provide AI education and digital skills to rural youth and educators in underserved U.S. communities. Microsoft partnered with Levi Strauss & Co. to create a next-generation AI “superagent” in Microsoft Teams, powered by Azure, to automate workflows and enhance employee and fan engagement.IBM’s Price Performance, Valuation & EstimatesIBM shares have gained 38.6% over the past year compared with the industry’s growth of 85.6%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, IBM trades at a forward price-to-sales ratio of 4.06, below the industry.Image Source: Zacks Investment ResearchEarnings estimates for 2025 have increased 1.2% to $11.39 over the past 60 days, while the same for 2026 have also rose 1.8% to $12.24.Image Source: Zacks Investment ResearchIBM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report International Business Machines Corporation (IBM): Free Stock Analysis Report Confluent, Inc. (CFLT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks