IBM Stock Soars 35% as Wedbush Highlights AI Potential

Wedbush analysts have included IBM in their list of top investment picks, highlighting the company's potential to benefit from the increasing expenditure on artificial intelligence. This strategic move is anticipated to drive IBM's stock price higher, as the firm has shown notable success in cloud penetration and is expected to have substantial profit opportunities in the next 12 to 18 months.

The analysts are confident that IBM is well-positioned to capitalize on the projected $4.4 trillion annual productivity boost that artificial intelligence is expected to deliver by 2030. As more businesses aim to enhance operational efficiency through AI implementation, IBM's strong performance in its software division and increased enterprise IT spending, particularly in generative AI technologies, make it an attractive investment choice.

IBM's fourth-quarter financial report surpassed expectations, with its software segment performing robustly. This positive outlook is further supported by the company's 13% year-to-date stock price increase and a 35% rise over the past 12 months. Despite concerns such as reduced federal spending and sluggish revenue and dividend growth, Wedbush remains optimistic about IBM's prospects. The consensus rating for IBM is "moderate buy," with a target price set at $260 per share.