XLK - IBM: AI Intrigue With Big Blue High Yield Strong FCF Upgrading To Buy
2024-05-28 14:57:33 ET
Summary
- Several S&P 500 firms, including IBM, mentioned "AI" at least 50 times in Q1 earnings calls, indicating the growing importance of AI in corporate strategies.
- Putting money where its mouth is, IBM plans to acquire a company for $6.4 billion to enhance its hybrid cloud and AI capabilities.
- While EPS growth for IBM is not impressive in the short term, strong earnings trends are possible in out years - investors are paid to wait with a 4% yield.
- After a bullish breakout last December, I highlight key price levels to watch.
FactSet put out an interesting read last week on the state of corporate earnings and how AI has infiltrated the zeitgeist among executives, particularly for firms in the Information Technology sector. According to the report, a handful of S&P 500 firms mentioned "AI" at least 50 times in respective Q1 earnings calls. Coming in fifth position is International Business Machines Corporation ( IBM ). AI is indeed a potential growth driver - and that's seen in a few different partnerships detailed lately....
IBM: AI Intrigue With Big Blue, High Yield, Strong FCF, Upgrading To Buy