International Business Machines (IBM) Cut to Hold on Weak Consulting Growth and Infrastructure Slowdown

Core Viewpoint - IBM has been downgraded from Buy to Hold by Erste Group due to concerns over slowing infrastructure momentum, weak consulting growth, and financial pressures, despite a positive outlook for AI [1][3]. Group 1: Company Performance - IBM's management is focusing on monetizing artificial intelligence through cloud services and developing proprietary AI chips [2]. - The company's operating margin has sharply declined, and long-term liabilities have increased, indicating potential financial strain [3]. Group 2: Market Outlook - The firm anticipates that IBM's stock may struggle to gain upward momentum in the medium term, with expectations of sideways price action [1][3]. - There are other AI stocks that may offer greater upside potential and carry less downside risk compared to IBM [5].