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RBC Sees AI Tailwinds Building for IBM as Enterprise Spending Stabilizes
Yahoo Finance· 2026-01-08 23:10
Core Insights - International Business Machines Corporation (IBM) is recognized as one of the 12 best DOW stocks to buy in 2026 [1] - RBC Capital Markets has raised IBM's price target to $350 from $300, maintaining an Outperform rating [2] - The year 2026 is anticipated to showcase the benefits of AI for companies prepared for enterprise adoption, while those unprepared may struggle [3] AI and Enterprise Spending - IBM is experiencing strong momentum in its AI portfolio, including products like watsonx and Red Hat AI, and has partnered with Anthropic to enhance its AI capabilities [4] - Enterprise spending is stabilizing, with improvements noted in specific areas, driven by generative AI innovations [3] - The z17 mainframe platform has contributed to infrastructure demand, resulting in a 10% growth in the software business and a 17% growth in the infrastructure segment in Q3 [5] Strategic Focus - IBM's strategic focus includes hybrid cloud, artificial intelligence, and consulting services, catering to enterprises globally [5]