12 High Flying AI Stocks This Week

8. 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 February 4^th, Bank of America Securities analyst Wamsi Mohan reiterated a Buy rating on the stock and set a price target of $270.00. The rating, issued after IBM’s Investor Day, emphasized sustainable revenue and margin growth for IBM. CEO Arvind Krishna has been leading the company toward strategic transformation, with a portfolio shift towards higher growth areas such as software and consulting. As such, the company targets a topline growth of over 5% and anticipates an approximately 10% compound annual growth rate in this segment. Improvements in profit and free cash flow are also a plus point, while divested low-growth assets and mergers and acquisitions have strengthened both total and organic growth. Lastly, emphasis on areas such as quantum computing and AI-driven consulting services is expected to provide further growth potential. All of these factors have together led to the reiterated buy rating.