The move: Nvidia stock jumped as much as 5% on Monday. The move adds to the gains for the AI stalwart in 2025, with the stock up 36% year-to-date. The jump on Monday helped spark a broader rise in major indexes. After starting the session in the red, the tech-heavy Nasdaq Composite was up almost 1% after news of the deal, while the S&P 500 jumped 0.5% to hit a fresh record high. The chart: Why: Nvidia announced a new partnership with OpenAI, which will build new gigascale AI facilities using the chip mak ...

Core Insights - IBM is often overlooked in discussions about the future of artificial intelligence, but it should be considered by investors as a potential player in the AI space [2][3] Company Overview - IBM's primary profit center is software, which constitutes over 40% of its revenue and nearly two-thirds of its gross profits [4] - Hardware sales are crucial for generating software and consulting revenue, with every $1 spent on IBM's cloud hardware leading to an additional $3 to $5 on software and $6 to $8 on services [5] Market Position - While IBM's share of the AI data center market is significantly smaller than Nvidia's, which generated over $35 billion in AI data center revenue, IBM is still a company to watch as the AI sector evolves [3][6] - The enterprise infrastructure business is currently stagnant, primarily due to weak sales of its Z series mainframes [7] Technological Advancements - IBM's Z16 and upcoming Z17 platforms excel in a type of machine learning called inference, which is becoming increasingly relevant in the AI industry [9][11] - The global AI inference server market is projected to grow at an annualized rate of over 18% through 2034, indicating potential demand for IBM's mainframe servers [12] Investment Potential - IBM is positioned as a strong player in the inference market, with its Telum II processors capable of handling 24 TOPS, which could lead to significant revenue growth [14] - Increased AI server revenue could translate into higher-margin software revenue for IBM, with much of this new revenue being recurring [15]