Here’s What Jim Cramer is Saying About These 10 Stocks

7. International Business Machines Corp. (NYSE:IBM)

Number of Hedge Fund Investors: 54

Jim Cramer believes that International Business Machines Corp. (NYSE:IBM) is performing well, largely due to the strong leadership of Arvind Krishna. He suggests that holding onto International Business Machines Corp. (NYSE:IBM) stock or even buying more could be a good strategy.

“I think IBM is doing great. Arvind Krishna has done a remarkable job with IBM. I would hold on to it or consider buying more.”

International Business Machines Corp. (NYSE:IBM) is set for substantial growth thanks to its strategic shift towards hybrid cloud and AI. The 2019 acquisition of Red Hat significantly strengthened International Business Machines Corp. (NYSE:IBM)’s hybrid cloud platform, crucial as the global cloud market continues to expand. This acquisition enhances International Business Machines Corp. (NYSE:IBM)’s ability to manage and integrate workloads across various cloud environments. Moreover, International Business Machines Corp. (NYSE:IBM)’s AI capabilities, especially with its Watson platform, are well-positioned to meet the increasing demand for AI-driven insights and automation.

International Business Machines Corp. (NYSE:IBM)’s impressive performance in cloud and cognitive software, as shown by strong Q2 2023 earnings, highlights its successful move from traditional businesses to high-margin, modern technologies. International Business Machines Corp. (NYSE:IBM) also appeals to investors with its solid dividend yield and share buybacks, reflecting its commitment to returning capital while investing in growth.

Diamond Hill Capital Long-Short Fund stated the following regarding International Business Machines Corporation (NYSE:IBM) in its first quarter 2024 investor letter:

“Among our bottom Q1 contributors short positions in Dick’s Sporting Goods, International Business Machines Corporation (NYSE:IBM) and Palomar Holdings. Though we believe the quality and durability of IBM’s free cash flow-generating capabilities remain questionable, investor sentiment has improved amid optimism for the company’s still-nascent AI product suite.”