1015 GMT - IBM is in a good position to be a major beneficiary of the artificial-intelligence build-out, J.P. Morgan analysts write. "We are encouraged by the recovery in the quarter," the analysts say. Data-management strength will persist, while corporate clients should continue to shift to IBM's software management service as secular tailwinds boost the company's software division, they say. Software revenue growth was better than feared, rebounding to grow 9% in the quarter, the analysts say. Delayed deals from earlier in the year came to fruition in the last quarter, bolstering topline strength, they say. Shares fall 5.3% premarket amid broader pressure on AI stocks.
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