$IBM(IBM)$ Why investors are b-To The Moon - Tiger Brokers Online Investing Community - To The Moon

Why investors are bullish about IBM :

Earnings Warning Is Great Transparency:

The company issued a preliminary warning for Q2 revenue ($17.2 billion versus the anticipated $17.86 billion), citing delayed customer contracts and softer enterprise spending. This is great transparency to the market as a whole and should be applauded for genuine public relations to the broader market that is willing to support IBM, now that the price is at a significant discount.

Shifting Priorities:

IBM are prioritising on AI and Chip dominance which strengthens their MOAT further, amongst competitors. This move is greatly appreciated by the market. Major market voices like Jim Cramer proposes that corporate IT spending is currently shifting away from traditional software and consulting toward cybersecurity, specific AI tokens, and hardware—areas where IBM has recently lagged.

New Competition:

IBM have acquired a few AI Startups that signify their strategic intent in acquiring more and more AI related technologies. The rise of disruptive large language models (LLMs) like Claude has been captured by IBM. These AI models are being used by IBM in modernizing legacy code (such as COBOL) which directly benefits IBM's lucrative system-level engineering and consulting divisions.

IBM Plunges 25%, Drags Software Stocks — Is a Style Rotation Underway?

IBM crashed 25.21% to $217 after Q2 revenue came in at approximately $17.2B, up just 1% and missing the ~$17.86B consensus, dragging Salesforce and peers lower. More telling: IBM noted late-June clients were shifting quarterly capex toward servers, storage, and memory to lock in capacity ahead of price hikes — explaining why hardware and semiconductors rallied while software sold off. Is this an isolated earnings miss, or the opening act of a software-to-hardware rotation?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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This is great transparency to the market as a whole and should be applauded for genuine public relations to the broader market that is willing to support IBM, now that the price is at a significant discount.</p>\n<p><br></p>\n<p>Shifting Priorities:&nbsp;</p>\n<p>IBM are prioritising on AI and Chip dominance which strengthens their MOAT further, amongst competitors. This move is greatly appreciated by the market. Major market voices like Jim Cramer proposes&nbsp;that corporate IT spending is currently shifting away from traditional software and consulting toward cybersecurity, specific AI tokens, and hardware—areas where IBM has recently lagged.</p>\n<p><br></p>\n<p>New Competition:&nbsp;</p>\n<p>IBM have acquired a few AI Startups that signify their strategic intent in acquiring more and more AI related technologies. The rise of disruptive large language models (LLMs) like Claude has been captured by IBM. These AI models are being used by IBM in&nbsp;modernizing legacy code (such as COBOL) which directly benefits&nbsp;IBM's lucrative system-level engineering and consulting divisions.</p>\n<p><br></p>\n<p></p>\n<p><br></p><img src=\"https://community-static.tradeup.com/news/cc00ca6a8f7a626adbdda1420f54231a\" tg-width=\"1066\" tg-height=\"1600\"><img src=\"https://community-static.tradeup.com/news/abd9202ef2de9379628d2a1010988592\" tg-width=\"640\" tg-height=\"340\"><img src=\"https://community-static.tradeup.com/news/4439e7db037fd74bf26a366b1511e12b\" tg-width=\"960\" tg-height=\"1280\"></body></html>","htmlText":"<html><head></head><body><a href=\"https://ttm.financial/S/IBM\">$IBM(IBM)$&nbsp;</a><v-v data-views=\"1\"></v-v>&nbsp;\n<p><br></p>\n<p>Why investors are bullish about IBM :</p>\n<p>Earnings Warning Is Great Transparency:&nbsp;</p>\n<p>The company issued a preliminary warning for Q2 revenue ($17.2 billion versus the anticipated $17.86 billion), citing delayed customer contracts and softer enterprise spending. This is great transparency to the market as a whole and should be applauded for genuine public relations to the broader market that is willing to support IBM, now that the price is at a significant discount.</p>\n<p><br></p>\n<p>Shifting Priorities:&nbsp;</p>\n<p>IBM are prioritising on AI and Chip dominance which strengthens their MOAT further, amongst competitors. This move is greatly appreciated by the market. Major market voices like Jim Cramer proposes&nbsp;that corporate IT spending is currently shifting away from traditional software and consulting toward cybersecurity, specific AI tokens, and hardware—areas where IBM has recently lagged.</p>\n<p><br></p>\n<p>New Competition:&nbsp;</p>\n<p>IBM have acquired a few AI Startups that signify their strategic intent in acquiring more and more AI related technologies. The rise of disruptive large language models (LLMs) like Claude has been captured by IBM. 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