IBM Betting on Quantum AI For Return to Computing Dominance
Companies / Tech Stocks Dec 30, 2020 - 03:32 PM GMTBy: Nadeem_Walayat
This is a continuation of my in-depth analysis into the buying levels for the Top 10 AI stocks to ride the electron mega-trend the whole of which was first made available to Patrons who support my work so immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month.
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7. IBM $118
IBM on an EC of -3 (-4) remains dirt cheap as IBM remains out of favour with investors. What do I do when a stock is dirt cheap, BUY! Unless I am missing something obvious. Can't get much cheaper than current valuations, clearly IBM is not on most tech stock investors radar which has been the case for many tech giants at various times, for instance I remember when the financial media was proclaiming that Microsoft was not a good buy when it was trading at $40 many years ago due to the expected demise of it's Window O/S market. It's funny in a away given that these two tech giants have been CONVERGING over the past few years as they morph into cloud computing services companies it's just that the market has not woken up to that fact yet and still think of IBM as what it was 10 years ago so definitely a sleeping giant awaiting cloud computing success. In fact last month IBM announced it was ditching it's slower growth IT services so that it could focus on cloud services and AI which is clearly causing some uncertainty for IBM stocks immediate future i.e. what the split means for stock holdings in each business, however the split will solidify IBM's long-term presence on this AI stocks list, so I will be looking to sell any stock in the split corporation in favour of concentrating in the AI division.
Anyway I don't expect IBM to do a Microsoft anytime soon, a case of accumulate when cheap and let the AI mega-trend work it's magic in due course and don't forget the 5.6% DIVIDEND YIELD! Where else can you get a 5.6% yield in a safe stock that will eventually come good in terms of capital gains that is trading at dirt cheap levels right now?
The stock price continues to trade in a trading range of between $130 and $114 with my last Buying Level of 118 being hit several times over recent months and presently parked right on it. Yes we could get marginally better prices at say $114 therefore the new Buying level is marginally lower at $116. whilst IBM remains parked in it's trading range. And above all don't forget IBM is an AI stock immersed in the likes of Quantum computing and machine learning, in my opinion the market is under pricing iBM.
Top AI Tech Stocks Buying Levels and Valuations Analysis
The rest of this analysis has first been made available to Patrons who support my work so immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.
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- Top 10 AI Stocks individual analysis i.e. for Google, Amazon, Apple etc.
- AI Stocks Buying Levels Q4 2020
- The Next IMMINENT Global Catastrophe After Coronavirus
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Nadeem Walayat
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Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
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