US tech giant International Business Machines (IBM) has demonstrated the resilience of its business model amid a market transition. Despite a 7 percent drop in revenue in the mainframe infrastructure sector, analysts maintain a "Buy" recommendation for IBM stock, especially after its valuation normalized to 17.6 times following a share price correction.
Solid growth in the software sector saved the company's financial performance. One of the main growth drivers was its subsidiary, Red Hat, which recorded a significant growth of 11 percent. This positive performance successfully offset the pressure on the traditional hardware business line.
On the other hand, the recent decline in IBM's stock price is viewed as a market response to a short-term slowdown as the company shifts its investment focus. IBM is actively reducing spending on traditional IT systems to strengthen its independent artificial intelligence (AI) infrastructure. This move is bolstered by the launch of Power Autonomous Operations, an AI agent claimed to resolve system disruptions up to 15 times faster than manual methods.
To expand its technology adoption, IBM has also entered into a strategic collaboration with Sperax, the developer of the SperaxOS AI agent platform. This partnership integrates Sperax's decentralized finance (DeFi) technology with IBM's cloud computing and AI infrastructure. Technically, analysts see the USD 210 price level as a strong support area that offers an attractive buy accumulation opportunity for investors.
