We recently published a list of 10 AI Stocks Investors are Watching Closely. In this article, we are going to take a look at where International Business Machines Corporation (NYSE:IBM) stands against other AI stocks investors are watching closely.
President Donald Trump has only recently announced the Stargate initiative, claiming it to be “the largest AI infrastructure project by far in history”. According to him, the project would help keep “the future of technology” in the US. However, a Bloomberg report reveals how Elon Musk is openly questioning whether the companies that have joined Trump’s announcement, promising hundreds of billions of dollars in artificial intelligence, could follow through on them.
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Could this be a sign of an early difference of opinion within the White House? Only hours after the announcement, Musk took to his platform, X, to reveal that the companies don’t have the funds.
“They don’t actually have the money. SoftBank has well under $10B secured. I have that on good authority”.
Contrary to Musk’s claims, Sam Altman, CEO of OpenAI, had his own statements to make on X. Altman posted that Musk’s claims are wrong and that he has been upset because this initiative could compete with his Elon Musk’s own AI endeavors.
“Wrong, as you surely know. Want to come visit the first site already under way? This is great for the country. I realize what is great for the country isn’t always what’s optimal for your companies, but in your new role I hope you’ll mostly put US first”.
— Sam Altman
Musk is leading Trump’s government efficiency efforts and will also be advising him on spending. The billionaire, ever since leaving OpenAI’s board in 2018, has been engaged in a feud with Altman. Sources close to Stargate also reveal that they are not sure how Musk has arrived at the figure. According to them, the company is well-positioned to deploy $100 billion.
“I think this will be the most important project of this era. We wouldn’t be able to do this without you, Mr. President”.
-Sam Altman.
In light of this, Bloomberg revealed that Trump has, on several occasions, promoted private-sector investment promises that never went on to materialize. One of these failed promises has been the failed Foxconn factory project which Trump deemed as the “Eighth Wonder of the World”. No wonder the Stargate announcement has sparked skepticism regarding the project’s completion.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 56
International Business Machines Corporation (NYSE:IBM) is a multinational technology company offering consulting services and a suite of AI software products. On January 22, the company availed the opportunity at the World Economic Forum 2025 in Davos to announce its collaboration with e&, a global technology group, to develop an AI and genAI governance solution. This collaboration will be leveraging IBM’s watsonx.governance enterprise AI and data governance platform, together with IBM Consulting’s expertise in AI implementation, for helping e& scale AI responsibly and track ROI. The new AI governance solution offers advanced features like automated risk management, compliance monitoring, and real-time performance analysis, helping e& mitigate risks, detect biases, and address regulatory standards throughout the AI lifecycle.
“IBM watsonx empowers organizations like e& to navigate the complexities of AI governance. By integrating automation, real-time monitoring, and centralized oversight, we are addressing key governance challenges and reducing risks associated with AI. Strengthening our long-standing partnership with e&, this milestone serves as a catalyst for responsible AI innovation”.
-Shukri Eid, General Manager, Gulf, Levant & Pakistan at IBM.
Overall, IBM ranks 5th on our list of AI stocks investors are watching closely. While we acknowledge the potential of IBM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IBM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
