IBM (IBM) Bets Big on AI and Mainframes to Jumpstart a New Growth Era

Faizan Farooque

Fri, May 16, 2025, 9:42 AM 1 min read

IBM (IBM, Financials) is doubling down connected artificial quality and mainframes arsenic it looks to boost margins and reignite growth, according to Stifel expert David Grossman, who came distant affirmative aft attending the company's capitalist event.

The tech elephantine is rolling retired AI tools crossed its ain operations to chopped costs and summation efficiency. That could mean much country successful the fund for research, marketing, and acquisitionsareas IBM has struggled to money successful the past.

One interior tool, watsonx Orchestrate, is being prepped for a broader commercialized launch. If successful, it could go a cardinal productivity merchandise for endeavor clients and unfastened caller gross streams.

IBM is besides gearing up for the z17 mainframe launch. The institution sees it arsenic a accidental to bring backmost customers that shifted to x86 servers oregon the cloud. Down the line, it whitethorn adjacent connection mainframe entree arsenic a service.

While IBM is intelligibly leaning much into growth, Grossman said it volition apt proceed to beryllium seen arsenic a steady, antiaircraft prime successful the abbreviated run.

Investors volition beryllium watching however rapidly IBM tin crook interior innovation into commercialized wins and whether the mainframe refresh delivers.

This nonfiction archetypal appeared connected GuruFocus.