IBM And AI: Will The Shift From Hardware To Business Intelligence And Data Analytics Pay Off?

AI, IBM, & Watson: A Summary



  • Of all artificial intelligence companies, currently IBM leads the race.
  • Watson was recently opened to the public under Watson Analytics; however, the free model keeps revenue streams low.
  • Generous dividends and stock buybacks are being financed by long-term loans, completely unsustainable unless long-term investments start to pay off.
  • Algorithmic and fundamental analysis determines the stock to be 100% unpredictable in the short term, slightly unfavorable in the mid-term (1 year), and a great long-term investment.

I Know First recently published an article on Seeking Alpha regarding IBM’s Watson and Artificial Intelligence. Artificial intelligence could quickly become one of the most lucrative fast growth markets on the planet and IBM Corp. (NYSE:IBM) is one of the large tech giants which is pouring large research money into developing and improving in this sector. IBM’s biggest AI investment, Watson, is designed to intake data in natural language, run huge scale big data analysis, and answer in natural language.

With 15 terabytes of RAM, Watson’s DeepQA technology employs over 100 overlapping techniques to answer a single question.  Most recently, IBM is pushing for use of Watson in the healthcare field to both assist and enhance medical care and research.

With over $1 billion in guaranteed funding going into the project over the next several years, this is truly a long term investment.  In the near term, analysis is trickier as it continues to discontinue unprofitable business sectors and finance stock repurchases with debt.

Read the full Seeking Alpha article here