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IBM's AI Push Takes Center Stage At Think 2025, Goldman Sees Path To Margin Growth
IBMIBM(IBM) Benzinga·2025-05-07 19:32

Group 1 - The core takeaway from IBM's Think 2025 event is the significance of its software products and services for large enterprise customers leveraging AI [1] - Analyst James Schneider maintained a Buy rating for IBM with a price target of 270[1]−IBMlaunchedLinuxONE5,capableof450billionsecureAIinferenceoperationsperday[1][2]Group2−Anupgradedversionofwatsonx.datawasintroduced,whichenhancestheaccuracyofAIagentsbyutilizingunstructureddata[2]−CEOArvindKrishnaemphasizedthatAIistransitioningfromexperimentationtodeliveringmeasurablebusinessvalue,focusingonproductivityandcostefficiency[2]−IBManticipatesthatAIagentscoulddrive30270 [1] - IBM launched LinuxONE 5, capable of 450 billion secure AI inference operations per day [1][2] Group 2 - An upgraded version of watsonx.data was introduced, which enhances the accuracy of AI agents by utilizing unstructured data [2] - CEO Arvind Krishna emphasized that AI is transitioning from experimentation to delivering measurable business value, focusing on productivity and cost efficiency [2] - IBM anticipates that AI agents could drive 30% of the one billion new applications by 2028 [2] Group 3 - By implementing its AI solutions internally, IBM aims to support ongoing margin expansion and free cash flow growth while executing mergers and acquisitions [3] - At the time of publication, IBM shares increased by 1.1% to 252.02 [3]