IBM shares rose 12 percent on Thursday to their highest level since 2013 after the company reported better-than-expected revenue estimates on strong demand for its artificial intelligence (AI) services, Reuters reported.
Orders received by IBM’s generative artificial intelligence unit doubled in the fourth quarter of last year and are expected to help the US tech giant boost total revenues by 4-6% in 2024.
The estimates were published late Wednesday in IBM’s report of financial results for the last quarter of 2023.
IBM shares rose to $194.93 after the data, the highest level since June 2023. IBM’s total market capitalization increased by approximately $19 billion after this new increase.
IBM shares are up 18% since the start of this year, and the New York-based company is one of the US tech giants to take advantage of the huge investor interest in the booming field of artificial intelligence.
IBM has also benefited from huge investor enthusiasm for AI
Buoyed by the prospect of lower interest rates, excitement over the rapid growth of artificial intelligence technology and US economic growth that beat all expectations and recession forecasts, the US stock market experienced a year of record gains in 2023 and in many cases close to all-time highs.
That trend continued earlier this year, despite concerns about the housing market and other structural issues, such as the continued rise of the U.S. public debt, which has reached new record levels.
The impressive rise in IBM shares came just a day after the market capitalization of Nvidia, another major US technology company, passed the $1.5 trillion mark for the first time, also amid huge investor enthusiasm for the software you
Since the release of ChatGPT, the most popular artificial intelligence program among the general public, on December 22, 2022, Nvidia’s stock price has risen from $152 to $613.62.
Known primarily to video game fans for years for its graphics cards, the impressive growth of this company is due to its dominance in the market for advanced graphics processing units (GPUs), the components used by AI systems for the complex calculations they perform.
PHOTO Article: Julius Kielaitis, Dreamstime.com.
Source: Hot News
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