We recently published a list of Top 10 AI News You Shouldn’t Miss. In this article, we are going to take a look at where International Business Machines Corporation (NYSE:IBM) stands against other top AI news you shouldn’t miss.
JPMorgan Asset Management’s Kerry Craig said in a latest program on CNBC that investors are looking beyond the top AI companies amid valuation and spending concerns following the launch of DeepSeek. The analyst said he remains bullish on the “secular theme” of AI and believes there are still opportunities for the market.
“I think playing it now through the market could be a little bit more of less around the hyperscalers and the producers of this technology and then thinking a little bit further along the AI value chain so the users of this technology, the software companies, maybe utilities, and thinking about energy providers and those further opportunities that may be a little bit better valued when it comes to the prospects and the equity market and where you might see better upside. It’s very difficult to keep repeating these very large returns we’ve seen across these names for the last couple of years.”
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For this article, we picked 10 AI stocks currently making moves on the back of the latest news. With each stock, we have mentioned the number of hedge fund investors. 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 Investors: 56
Jim Cramer in a recent program on CNBC talked about International Business Machines Corporation (NYSE:IBM):
“Next, International Business Machines (NYSE:IBM), right? This one’s a bit of a shocker, many missed it coming. What you had to be watching with the integration of Red Hat, a powerful enterprise software platform, a few years ago, the spin-off of their old IT infrastructure business asKyndryl, and the conversion of one’s big hardware company into one that gets more than 40% of its business from recurring software revenue. Those moves have transformed International Business Machines (NYSE:IBM) into a company with much more consistent earnings, and Wall Street’s always willing to pay up for consistency. Most investors had left this one for dead. It didn’t die.”
Overall, IBM ranks 9th on our list of top AI news you shouldn’t miss. While we acknowledge the potential of IBM, our conviction lies in the belief that under the radar 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.
