12 Trending AI Stocks on Latest News and Ratings

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 February 5, David Grossman from Stifel Nicolaus maintained a “Buy” rating on the stock with a price target of $290.00. IBM’s growth prospects and financial outlook have led to the buy rating for the stock. The company’s management has presented a new financial roadmap that focuses on moderate revenue growth, a projected annual expansion of operating margin, and free cash flow growth exceeding revenue growth. The analyst noted that IBM has several avenues for achieving revenue growth targets, especially through accelerated software growth. The company has already witnessed its software segment recording its biggest revenue jump in five years in Q4, with customers prioritizing spending on cloud infrastructure amidst a rush to adopt the data-intensive generative artificial intelligence technology. Additionally, its current trading position at a fair valuation combined with its dividend yield suggests potential price appreciation. Free cash flow generation is also improving, increasing IBM’s ability to invest in growth.