An AI and supercomputer pioneer with Watson, IBM moved away from past projects in 2022 but has vowed to invest 20 billion over the next decade to develop and manufacture semiconductors, mainframe computers and technology used for AI and quantum computing.
IBM stock investors receive a 5.15% dividend. Stifel’s $158 price objective compares with the $146.76 consensus target and Monday’s closing print of $130.19.
Microsoft
This is a more conservative way for investors to participate in the massive cloud growth. Microsoft Inc. (NASDAQ: MSFT) develops, licenses and supports software, services, devices and solutions worldwide. The company operates in the following three segments.
The Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business; Skype, Outlook.com, OneDrive and LinkedIn; and Dynamics 365, a set of cloud-based and on-premises business solutions for organizations and enterprise divisions.
The Intelligent Cloud segment licenses SQL, Windows Servers, Visual Studio, System Center and related Client Access Licenses. GitHub provides a collaboration platform and code hosting service for developers, while Nuance provides health care and enterprise AI solutions, and Azure is a cloud platform. It also offers enterprise support, Microsoft consulting and nuance professional services to assist customers in developing, deploying and managing Microsoft server and desktop solutions, as well as training and certification on Microsoft products.
The More Personal Computing segment provides Windows original equipment manufacturer (OEM) licensing and other non-volume licensing of the Windows operating system; Windows Commercial, such as volume licensing of the Windows operating system, Windows cloud services and other Windows commercial offerings; patent licensing; and Windows Internet of Things. It also offers Surface, PC accessories, PCs, tablets, gaming and entertainment consoles and other devices; Gaming, including Xbox hardware and Xbox content and services; video games and third-party video game royalties; and Search, including Bing and Microsoft advertising. The company sells its products through OEMs, distributors and resellers; and directly through digital marketplaces, online stores and retail stores.
The ChatGPT AI deal had been in the news in a big way after it was disclosed that Microsoft had invested an additional $10 billion in the AI module after starting off with a $1 billion investment in 2019. Many feel that the venture into AI could be a huge tailwind for the company’s surging cloud business. It has been reported that Microsoft will receive 75% of OpenAI’s profits until it claws back its investments, after which it will have a 49% stake in the firm. Microsoft also has disclosed plans to launch an AI version of its Bing search engine powered by ChatGPT by the end of the month. It is a good bet it will be using AI in many of the company’s products and services.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
