IBM's New Anthropic Partnership Could Be the AI Catalyst Investors Have Been Waiting For

Core Insights - IBM is seen as a significant underperformer in the AI sector despite its early innovations with Deep Blue and Watson, failing to monetize these technologies effectively [1] - Under CEO Arvind Krishna, IBM has experienced a resurgence, with stock prices doubling in the last two years and a revenue increase of 8% in Q2, leading to a 15% rise in adjusted earnings per share [2] - The company's generative AI order book has reached $7.5 billion, indicating a strong role of AI in its growth [3] Partnership with Anthropic - IBM has partnered with Anthropic, the AI startup behind the Claude chatbot, integrating it into its software portfolio to enhance productivity and security [5] - This partnership is beneficial for both companies; Anthropic gains access to IBM's corporate relationships, while IBM enhances its AI capabilities and reputation [6] Market Performance and Future Outlook - IBM's stock has seen recent gains driven by AI expectations, but the stock is no longer considered cheap [8] - The Anthropic partnership is expected to accelerate IBM's growth, although current profitability improvements warrant caution before labeling the stock as a buy [9]