IBM’s AI Ambitions Fuel Investor Debate

The investment community finds itself at a crossroads regarding IBM, with institutional players taking sharply divergent positions on the technology giant’s future. While some major funds are scaling back their exposure, others are making significant bets on IBM’s strategic pivot toward artificial intelligence and quantum computing.

IBM’s latest quarterly results provide compelling evidence for optimistic investors. The company reported revenue of $16.98 billion, surpassing expectations by 7.7% compared to the previous year. Earnings per share reached $2.80, exceeding analyst projections by 15 cents.

Looking ahead, management has issued 2025 guidance forecasting approximately $10.78 in earnings per share. The quarterly dividend of $1.68 per share translates to an annual yield of 2.4%, though this comes with a payout ratio exceeding 109% of earnings.

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