10 Trending AI Stocks on Investors’ Radar

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 29, the company saw its shares rise as much as 10% after it reported a Q4 earnings beat. The company’s adjusted earnings per share (EPS) of $3.92 outperformed analyst expectations of $3.78. However, revenue was $17.55 billion, slightly missing the estimate of $17.56 billion. The company’s software segment saw the biggest jump in five years. This is largely because customers have been prioritizing spending on cloud infrastructure in a rush to adopt the data-intensive generative artificial intelligence technology.

The company also forecast revenue growth of at least 5% at constant currency for fiscal 2025, reflecting confidence in its AI and cloud strategy. IBM’s consulting business, which accounts for about 80% of IBM’s AI book, fell about 2% to $5.2 billion in the quarter. This is because the companies who have focused spending on longer-term consulting deals to integrate AI in their business are yet to reflect in IBM’s revenue. Like Meta, IBM also talked about DeepSeek. Addressing the launch of its AI models, IBM Chief Financial Officer James Kavanaugh told Reuters that “DeepSeek was an initiation that open (source) AI can play a role in the overall GenAI space”. However, it is unclear whether IBM plans to offer DeepSeek’s models on its Watsonx platform.