Core Insights - IBM reported strong fourth-quarter 2024 results, with adjusted earnings and revenues exceeding estimates, driven by solid demand for hybrid cloud and AI solutions [2][3] Financial Performance - Net income for Q4 2024 was $2.91 billion or $3.09 per share, down from $3.29 billion or $3.55 per share in the previous year due to high operating expenses [4] - For the full year 2024, net income was $6.02 billion or $6.43 per share, compared to $7.5 billion or $8.14 per share in 2023 [5] - Quarterly total revenues increased to $17.55 billion from $17.38 billion, with a 2% year-over-year increase on a constant currency basis [6] Segment Performance - Software segment revenues rose to $7.92 billion from $7.18 billion, with notable growth in Red Hat (up 17%), Automation (16%), and Data & AI (5%) [8] - Consulting segment revenues decreased to $5.17 billion from $5.28 billion, missing estimates due to clients prioritizing spending [9] - Infrastructure segment revenues fell to $4.26 billion from $4.6 billion, reflecting lower demand and higher investments in AI and hybrid cloud [10] Cash Flow & Liquidity - IBM generated $4.33 billion in cash from operations during the quarter, with free cash flow at $6.16 billion, up from $6.09 billion in the prior year [12] Outlook - For 2025, IBM expects revenue growth of at least 5% on a constant currency basis, with free cash flow projected around $13.5 billion [13]

Core Insights - Nvidia continues to outperform earnings expectations, driven by its leadership in the rapidly growing artificial intelligence (AI) market, projected to grow from $200 billion to $1 trillion by the end of the decade [1][13] - The company reported a 78% increase in fourth-quarter revenue to a record $39 billion and a 114% increase in full-year revenue to $130 billion, with a forecast of $43 billion for the current quarter, representing a 65% year-over-year increase [2] Group 1 - The launch of the new Blackwell architecture has exceeded Nvidia's expectations, generating $11 billion in revenue during its fastest production ramp ever [4][5] - Demand for the Blackwell platform is described as "extraordinary," with its capabilities expected to significantly enhance Nvidia's growth in the future [6] - Nvidia's gross margin has declined to 73% due to the complexities of launching Blackwell, with expectations of further narrowing to about 70% in the current quarter, although this is seen as a temporary dip [7][8] Group 2 - Nvidia has a clear understanding of its customers' future plans, with forecasts indicating strong capital investments in data centers that will utilize Nvidia's GPUs for accelerated computing and reasoning AI [11] - The company is positioned to support the next phases of AI growth, including agentic AI and sovereign AI, which will further drive demand for its products [12] - Overall, Nvidia's growth trajectory remains strong, making it a solid long-term investment in the AI sector [13]

Salesforce (CRM -2.37%) stock is losing a bit of ground today following the company's recent fourth-quarter report. The software specialist's share price was down 1% as of 1:15 p.m. ET. The stock had been off as much as 4.8% earlier in trading.Salesforce published its fiscal Q4 numbers after the market closed yesterday, reporting mixed results. While earnings came in better than anticipated, sales came in under Wall Street's expectations. The company's forward guidance also missed Wall Street's target.Sales ...