10 Stocks Gaining Momentum From Key Collaborations

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1. IBM (NYSE:IBM)

IBM plans to acquire Applications Software Technology, a consulting company that creates and sells solutions on the Oracle Cloud Applications Suite. While the financial details of the acquisition haven’t been disclosed, the acquisition is set to materialize during this quarter as long as there are no regulatory hurdles.

Applications Software Technology boasts clients in multiple industries including consumer packaged goods, energy, and manufacturing. But more important than that, the company’s ability to create applications on the Oracle Suite will help IBM serve its existing clients better.

2024 was one of the best years for IBM investors as the stock surged to 10-year highs. Acquisitions like this will help the company sustain that bull run going forward.

IBM is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held IBM at the end of the third quarter which was 54 in the previous quarter. While we acknowledge the potential of IBM as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as IBM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article was originally published at Insider Monkey.

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