10 AI News Updates Investors Should Not Miss

6. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 56

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. On January 30, BMO Capital analyst Keith Bachman maintained a “Hold” rating on the stock with a price target of $280.00. Bachman’s rating has highlighted both positive and negative points related to IBM. He began by noting that IBM’s free cash flow guidance for FY25 has exceeded investor expectations, which reflects strong profit-driven growth despite potential dilution coming from the HarshiCorp acquisition.

Another positive factor is IBM is focused on enhancing its software portfolio and leadership in generative AI within its consulting services, presenting growth opportunities. Moving to concerns regarding the company, Bachman noted that the company’s revenue guidance seems conservative and below expected levels on an organic basis. The overall year-over-year revenue growth excluding the HashiCorp acquisition deal is projected around 4%, lower than previous estimates. Lastly, actual organic growth prospects for IBM’s consulting services and software growth remain uncertain. These mixed concerns and positive aspects related to IBM have led to an overall hold rating on the stock.