10 AI Stocks Making Waves on Wall Street

7. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 56

International Business Machines Corporation (NYSE:IBM) is a multinational technology company offering consulting services and a suite of AI software products. On January 23, BofA analyst Wamsi Mohan raised the firm’s price target on IBM to $260 from $250 and kept a “Buy” rating on the shares. According to the firm, IBM is anticipated to meet and possibly exceed street expectations for fiscal year 2025. Mohan also expects revenue growth to be driven by robust performance in software, particularly favorable AI trends and strategic acquisitions such as that of HashiCorp. The firm also highlighted IBM’s consulting segment to improve in the latter half of 2025. This is going to be backed by an enhanced discretionary spending environment and backlog conversion. Another factor contributing to a stronger revenue outlook this year is the infrastructure segment benefiting from the new Z17 mainframe cycle. Citing an attractive dividend yield, a defensive portfolio, and strong growth potential, Mohan reiterated a Buy rating on the stock.