IBM’s AI Push Takes Center Stage At Think 2025, Goldman Sees Path To Margin Growth – IBM (NYSE:IBM)

IBM IBM held its Think 2025 event in Boston on Tuesday.  

The key takeaway from the event is the company’s portfolio of software products and services being “integral to large enterprise customers as they leverage AI across their organizations,” according to Goldman Sachs.

The IBM Analyst: Analyst James Schneider maintained a Buy rating and price target of $270.

The IBM Thesis: The company launched LinuxONE 5, which enables 450 billion secure AI inference operations per day, Schneider said in the note.

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The company also introduced an upgraded watsonx.data, which taps unstructured data to increase accuracy of AI agents, he added.

“CEO Arvind Krishna noted that AI is shifting from experimentation to delivering measurable business value, with an emphasis on productivity and cost efficiency,” the analyst wrote.

IBM projected that AI agents could power 30% of the one billion new applications by 2028, he further stated.

By applying its AI solutions internally, the company can “support ongoing margin expansion and FCF growth – even as it executes on M&A,” Schneider said.

IBM Price Action: Shares of IBM were up 1.1% to $252.02 at the time of publication on Wednesday.

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