We recently published a list of 10 AI Stocks Making Waves on Wall Street. In this article, we are going to take a look at where International Business Machines Corporation (NYSE:IBM) stands against other AI stocks making waves on Wall Street.
With so much happening in AI, keeping up with the latest news can be challenging. Every day, a new country emerges with its plans to embrace and advance in AI, tech companies keep unveiling new AI products, and industry leaders continue to shape the conservation-sometimes even with sharp exchanges.
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In the latest news, South Korea has announced plans to secure 10,000 high-performance graphics processing units (GPUs) this year. The country plans to keep itself relevant in the race toward artificial intelligence.
“As competition for dominance in the AI industry intensifies, the competitive landscape is shifting from battles between companies to a full-scale rivalry between national innovation ecosystems”.
-South Korea’s acting President Choi Sang-mok said in a statement.
These 10,000 GPUs will be secured through public-private cooperation to help the country launch services at its national AI computing center early. While the US government has recently announced a new regulation that aims to restrict the flow of American AI chips and technology to certain countries, South Korea doesn’t fall into the restricted list.
The details of the type of GPU products to be purchased by South Korea, its models, and other particulars will be finalized by September of this year. The US regulation has essentially divided the world into two tiers. 18 countries are essentially exempt from the restrictions, while 120 face caps, and countries such as Iran, China, and Russia are barred completely.
In other news, tech mogul Elon Musk has released its latest artificial intelligence model, Grok 3. According to Musk, the AI model can outperform offerings from OpenAI and China’s DeepSeek based on early testing. This testing included standardized tests on math, science, and coding.
“We’re very excited to present Grok 3, which is, we think, an order of magnitude more capable than Grok 2 in a very short period of time”.
-Musk said at a demonstration of Grok 3 on his social media platform X.
Musk’s team also said it was launching a new product called “Deep Search”, set to act as a “next generation search engine.”
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 and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products. On February 17, the company announced a collaboration with Penn State, a Pennsylvania-based, top-ranked public university. The collaboration will allow the development of MyResource, an AI-powered student concierge built with Watsonx, IBM’s portfolio of AI products.
Expected to launch in the fall semester to nearly 90,000 Penn State students, the gen AI-powered assistant will allow streamlined access to campus resources, such as academic advising, health and wellness, and financial aid. The need for the concierge was discovered after an analysis by the university student leaders, who identified how students needed improved access to campus services. IBM is also planning to bring this solution to other higher education institutions in the United States.
“IBM is honored to co-create a solution with Penn State that will play a significant role in its goal to advance engagement from students through an AI-infused assistant. Penn State students want quicker access to the important resources they need to be successful during their college experience and beyond. By integrating IBM’s AI, Penn State can unlock new possibilities for its students.”
-IBM General Manager, Public Sector Frank Attaie.
Overall, IBM ranks 7th on our list of AI stocks making waves on Wall Street. 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 timeframe. 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.