Latest news with #IBM
Hindustan Times
4 hours ago
- Business
- Hindustan Times
Is this year the beginning of the end of smartphones?
Last month, a curious partnership in the Valley made me wonder on the future of smart devices and the way we access our digital universe. In a rather whimsical blog post, OpenAI announced the acquisition of Jony Ive's studio startup io for $6.5 billion. 'We have the opportunity to completely reimagine what it means to use a computer,' said Altman, adding that despite unprecedented capability and new technologies like AI, the digital experience is being shaped by traditional products and interfaces. A new technology like AI, he explained, requires a complete rethink of tools through which we interact with the digital universe. The first smartphone came into being in the early 1993, when IBM's Simon added email and fax to a phone's capability. (Representative photo) This acquisition would've become yet another corporate announcement, except for the timing of it. In the last couple of years, there's a feeling across Silicon Valley that smartphone as a device to interact with the digital world is not enough. New technologies like AR/VR, robotics and now AI need new products to explore them with. The new generation is approaching the digital world as an extension of themselves, through speech and not swiping or typing. As technology becomes more intuitive, we need new devices to reflect this change – more immersive and aural, devices that augment the real world and not take you away from it. Tech companies are putting their heads together to develop devices that are more immersive or approach digital through other senses like aural or even neural. Legacy companies like Meta, Apple and Google and startups like Neuralink are experimenting with smart glasses, wearables, iOT devices, smartwatches, neural computers and even spatial computers (like VisionPro) where digital media is integrated with our real-life experience. So far, none of these devices have worked, but it does feel like we're at a cusp of dramatic change. A senior vice president in Apple even acknowledged that in 10 years, iPhones could go the way of iPods - become irrelevant and retro. It's time for this change, I would say. After all, our way of interacting with digital spaces – through laptops, desktops and smart devices - has been the same for more than 30 years now. The first smartphone came into being in the early 1993, when IBM's Simon added email and fax to a phone's capability. In 1990s that there was a constant feeling of experimentation as the handheld phones and PDAs that could access the internet were being played with through product design. Companies across the world from USA to Japan wanted to integrate access to internet with a phone. The mid 2000s brought smartphones like Blackberry with QWERTY keyboards, which quickly made tapping and emailing the done thing to do. This changed dramatically when finger-operative touchscreen technology came out into the market. Within a couple of years in 2006, LG had used it to launch a touchscreen smartphone. And then Apple made it the new normal when it launched iPhones in 2007. Also Read: Do gaming smartphones really make sense in 2025? Though there have been amazing advances in the smartphone including camera capabilities, chip design and biometrics, the device design itself hasn't changed the way we interact with the digital world. There's a screen we swipe, touch and pinch. We check out social media, upload our photos on cloud and chat and email on the go. This staleness in the design was clear in Apple's recently concluded annual developer conference, WWDC 2025. The new iPhone 17 will be more or less the same as iPhone 16 with a few tiny tweaks. Jony Ive, whose company OpenAI acquired, was formerly Apple's chief design officer and led design teams for Apple's iconic products – the iPhone, the iPod and even the Macbook Pro – before leaving the company in 2019. This new project that he's working on, has got him (and us) excited. According to him, this time now, 2025, reminds him of three decades ago when he emigrated to Silicon Valley to design products that would interact with the Internet. 'I have a growing sense that everything I have learned over the last 30 years has led me to this moment,' he said in the acquisition announcement. The Wall Street Journal reported that Open AI is considering options that want to move consumers beyond screens into a unique combination of listening devices and cameras. 'Surely there's something beyond legacy products,' says Ive, adding that they've already built a prototype and are currently working on more AI-first devices. I know what you're thinking and frankly, I'm thinking the same. Smartphones are our lifelines. We do everything on these devices – from chatting to watching shorts and videos, to making payments on the go. We're multi-screen beasts today, our fingers constantly swiping or typing and ridden with RSI, our eyes fatigued. Also Read: AI needs to be open and inclusive like India Stack But the world is also changing in ways that make me think maybe we will use devices without screens as the enablers. Voice interaction has caught on. The way we fish for information is going from a typed search to a prompt we ask. There is an increasing unease about phone-addiction and screen time. We're all looking for a way out. Something that allows us to be digitally connected without exhausting us. Devices that are more intuitive, more immersive, aural and neural that become extensions of us so we can interact with digital spaces without choosing them over real life. All this signals to an experimentative market which is ready for something new. I can't wait to find out what replaces my screens in the near future. What about you?
Globe and Mail
14 hours ago
- Business
- Globe and Mail
‘IBM Stock Is an AI Winner,' Says Wedbush Analyst Dan Ives
Tech giant IBM (IBM) continues to win praise on Wall Street as analysts grow increasingly bullish on its long-term potential. Indeed, four-star Wedbush analyst Daniel Ives raised his price target on the stock from $300 to $325 while maintaining an Outperform rating. Ives named IBM one of the top software stocks to own as artificial intelligence adoption accelerates, calling it an ' AI winner' on his IVES AI 30 list. Despite its strong stock performance so far in 2025, Ives believes that IBM is still underowned and only in the early stages of a multi-year growth renaissance driven by AI. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Adding to this optimism, Bank of America and Evercore ISI also recently raised their price targets on IBM due to the company's ongoing transformation. BofA's five-star analyst, Wamsi Mohan, boosted his target to $320 from $290, arguing that IBM is no longer the 'value trap' some investors remember from its pre-2020 days. Instead, IBM has restructured its software segment by acquiring higher-growth businesses and shedding slower, cost-heavy operations, which are moves that should lead to stronger revenue growth going forward. Similarly, Evercore ISI raised its price target from $275 to $315 and now expects mid-to-high single-digit revenue growth and double-digit earnings and free cash flow growth in the next few years. According to five-star analyst Amit Daryanani, IBM could generate $16–$18 per share in annual earnings within three years. With market sentiment and valuation multiples improving, all three firms agree that IBM is well-positioned to benefit from the next phase of enterprise AI and cloud expansion. What Is the Target Price for IBM? Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on seven Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $267.54 per share implies 5% downside risk. See more IBM analyst ratings
Yahoo
15 hours ago
- Business
- Yahoo
Bosses want you to know AI is coming for your job
SAN FRANCISCO - Top executives at some of the largest American companies have a warning for their workers: Artificial intelligence is a threat to your job. CEOs from Amazon to IBM, Salesforce and JPMorgan Chase are telling their employees to prepare for disruption as AI either transforms or eliminates their jobs in the future. Subscribe to The Post Most newsletter for the most important and interesting stories from The Washington Post. AI will 'improve inventory placement, demand forecasting and the efficiency of our robots,' Amazon CEO Andy Jassy said in a Tuesday public memo that predicted his company's corporate workforce will shrink 'in the next few years.' He joins a string of other top executives that have recently sounded the alarm about AI's impact in the workplace. Economists say there aren't yet strong signs that AI is driving widespread layoffs across industries. But there is evidence that workers across the United States are increasingly using AI in their jobs and the technology is starting to transform some roles such as computer programming, marketing and customer service. At the same time, CEOs are under pressure to show they are embracing new technology and getting results - incentivizing attention-grabbing predictions that can create additional uncertainty for workers. 'It's a message to shareholders and board members as much as it is to employees,' Molly Kinder, a Brookings Institution fellow who studies the impact of AI, said of the CEO announcements, noting that when one company makes a bold AI statement, others typically follow. 'You're projecting that you're out in the future, that you're embracing and adopting this so much that the footprint [of your company] will look different.' Some CEOs fear they could be ousted from their job within two years if they don't deliver measurable AI-driven business gains, a Harris Poll survey conducted for software company Dataiku showed. Tech leaders have sounded some of the loudest warnings - in line with their interest in promoting AI's power. At the same time, the industry has been shedding workers the last few years after big hiring sprees during the height of the coronavirus pandemic and interest rate hikes by the Federal Reserve. At Amazon, Jassy told the company's workers that AI would in 'the next few years' reduce some corporate roles like customer service representatives and software developers, but also change work for those in the company's warehouses. IBM, which recently announced job cuts, said it replaced a couple hundred human resource workers with AI 'agents' for repetitive tasks such as onboarding and scheduling interviews. In January, Meta CEO Mark Zuckerberg suggested on Joe Rogan's podcast that the company is building AI that might be able to do what some human workers do by the end of the year. 'We, at Meta as well as the other companies working on this, are going to have an AI that can effectively be sort of a mid-level engineer at your company,' Zuckerberg said. 'Over time we'll get to the point where a lot of the code in our apps … is actually going to be built by AI engineers instead of people engineers.' Dario Amodei, CEO of Anthropic, maker of the chatbot Claude, boldly predicted last month that half of all white-collar entry-level jobs may be eliminated by AI within five years. Leaders in other sectors have also chimed in. Marianne Lake, JPMorgan's CEO of consumer and community banking, told an investor meeting last month that AI could help the bank cut headcount in operations and account services by 10 percent. The CEO of BT Group Allison Kirkby suggested that advances in AI would mean deeper cuts at the British telecom company. Even CEOs who reject the idea of AI replacing humans on a massive scale are warning workers to prepare for disruption. Jensen Huang, CEO of AI chip designer Nvidia said last month, 'You're not going to lose your job to an AI, but you're going to lose your job to someone who uses AI.' Google CEO Sundar Pichai said at Bloomberg's tech conference this month that AI will help engineers be more productive but that his company would still add more human engineers to its team. Meanwhile, Microsoft is planning more layoffs amid heavy investment in AI, Bloomberg reported this week. Other tech leaders at Shopify, Duolingo and Box have told workers they are now required to use AI at their jobs, and some will monitor usage as part of performance reviews. Some companies have indicated that AI could slow hiring. Salesforce CEO Marc Benioff recently called Amodei's prognosis 'alarmist' on an earnings call, but on the same call chief operating and financial officer Robin Washington said that an AI agent has helped to reduce hiring needs and bring $50 million in savings. Despite corporate leaders' warnings, economists don't yet see broad signs that AI is driving humans out of work. 'We have little evidence of layoffs so far,' said Columbia Business School professor Laura Veldkamp, whose research explores how companies' use of AI affects the economy. 'What I'd look for are new entrants with an AI-intensive business model, entering and putting the existing firms out of business.' Some researchers suggest there is evidence AI is playing a role in the drop in openings for some specific jobs, like computer programming, where AI tools that generate code have become standard. Google's Pichai said last year that more than a quarter of new code at the company was initially suggested by AI. Many other workers are increasingly turning to AI tools, for everything from creating marketing campaigns to helping with research - with or without company guidance. The percentage of American employees who use AI daily has doubled in the last year to 8 percent, according to a Gallup poll released this week. Those using it at least a few times a week jumped from 12 percent to 19 percent. Some AI researchers say the poll may not actually reflect the total number of workers using AI as many may use it without disclosing it. 'I would suspect the numbers are actually higher,' said Ethan Mollick, co-director of Wharton School of Business' generative AI Labs, because some workers avoid disclosing AI usage, worried they would be seen as less capable or breaching corporate policy. Only 30 percent of respondents to the Gallup survey said that their company had general guidelines or formal policies for using AI. OpenAI's ChatGPT, one of the most popular chatbots, has more than 500 million weekly users around the globe, the company has said. It is still unclear what benefits companies are reaping from employees' use of AI, said Arvind Karunakaran, a faculty member of Stanford University's Center for Work, Technology, and Organization. 'Usage does not necessarily translate into value,' he said. 'Is it just increasing productivity in terms of people doing the same task quicker or are people now doing more high value tasks as a result?' Lynda Gratton, a professor at London Business School, said predictions of huge productivity gains from AI remain unproven. 'Right now, the technology companies are predicting there will be a 30% productivity gain. We haven't yet experienced that, and it's not clear if that gain would come from cost reduction … or because humans are more productive.' The pace of AI adoption is expected to accelerate even further if more companies use advanced tools such as AI agents and they deliver on their promise of automating work, Mollick said. AI labs are hoping to prove their agents are reliable within the next year or so, which will be a bigger disrupter to jobs, he said. While the debate continues over whether AI will eliminate or create jobs, Mollick said 'the truth is probably somewhere in between.' 'A wave of disruption is going to happen,' he said. Related Content 3-pound puppy left in trash is rescued, now thriving How to meet street cats around the world 'Jaws' made people fear sharks. 50 years later, can it help save them?
Yahoo
16 hours ago
- Business
- Yahoo
International Business Machines (NYSE:IBM) Amends And Extends Credit Agreements To 2028 and 2030
International Business Machines recently reshaped its debt structure through extended credit agreements, potentially providing the company with greater financial flexibility. This strategic move coincides with a 15% share price increase over the last quarter, a period that also saw market trends align with a 10% annual increase. Notably, IBM's partnerships, such as the collaboration with Deutsche Bank and the extension with Oracle, may have bolstered its position amidst these market conditions. Despite a drop in Q1 net income to $1.06 billion, the dividend increase and IBM's ongoing investments signal strong growth intentions, complementing its recent market performance. We've identified 4 weaknesses with International Business Machines and understanding the impact should be part of your investment process. These 17 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch. The recent restructuring of IBM's debt could improve its financial agility, impacting the company's capacity for future investments in cloud and AI—two key growth drivers. Over the past five years, IBM's total shareholder returns, which encompass both share price appreciation and dividends, reached a significant 213.45%. This performance, when compared with the broader US IT industry benchmark over the last year, reflects IBM's ability to secure returns despite operational challenges. Such long-term results demonstrate IBM's resilience and adaptability in a rapidly changing technological landscape. However, with the recent market activity reflecting a 15% rise in IBM's share value over the last quarter, it remains important to contextualize this relative to the current analyst price target of US$258.02. The share price, standing at US$253.37, indicates a small discount to the consensus target. Market trends influencing earnings forecasts could be shaped by the newly acquired financial flexibility from the debt realignment, allowing IBM to continue prioritizing its hybrid cloud and AI initiatives. Any positive swing in these sectors could potentially enhance IBM's revenue and earnings forecasts, countering previous headwinds tied to economic stability issues. The analysis detailed in our International Business Machines valuation report hints at an inflated share price compared to its estimated value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:IBM. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16 hours ago
- Business
- Yahoo
Analysts revamp IBM stock price target after AI-fueled new high
Analysts revamp IBM stock price target after AI-fueled new high originally appeared on TheStreet. For investors looking beyond popular AI software names like Palantir, International Business Machines Corp. () is quietly becoming a stock to watch. On June 18, IBM stock closed at a record $283.21. Year-to-date, the stock is up more than 27%. 💵💰💰💵 The 114-year-old company, once best known for mainframes and hardware, has spent the past few years transforming itself into a modern software and consulting business. It has focused on strategic acquisitions, exited low-growth and high-cost units, and rebalanced its business toward artificial intelligence, hybrid cloud, and enterprise automation. Today, IBM sells software tools that help businesses build and manage AI systems, including WatsonX, its platform for creating and training AI models. It also owns Red Hat, the open-source software giant it acquired in 2019, which plays a key role in its hybrid cloud strategy. Many of IBM's clients are large enterprises and government agencies looking to streamline operations through AI and cloud technology. IBM stock fell 6.6% on April 24 after its first-quarter earnings report but quickly recovered in the weeks that followed. IBM reported revenue of $14.5 billion for the first quarter, up 1% from the prior year and slightly above analyst expectations. Adjusted earnings per share came in at $1.60, down 5% year over tech giant warned of an "uncertain" operating environment, but reaffirmed its full-year outlook for 5% revenue growth and $13.5 billion in free cash flow, key for both dividends and possible future acquisitions. "While no one is immune to uncertainty, we enter this environment from a position of relative strength and resiliency," IBM CEO Arvind Krishna said during the April earnings call. "Our clients run the world's most essential processes. Our diversity across businesses, geographies, industries, and large enterprise clients position us well to navigate the current climate." Bank of America analyst Wamsi Mohan has raised his price target for IBM to $320 from $290, reiterating a buy rating on the shares, according to a research note on June 18. Despite trading at all-time highs, Mohan believes that IBM "remains interesting due to the transformational initiatives undertaken by management, positioning for growth in Gen AI, Agentic AI (and eventually quantum), and strong FCF driven by internal productivity initiatives."The analyst continues to view IBM as "a defensive investment" with improving revenue growth. That growth could lead to more cash flow that could be reinvested in more mergers and acquisitions (M&A). Meanwhile, BofA sees the potential for IBM's revenues to accelerate. "In our opinion, the Mainframe has increased in relevance and drives everything from AI, increased software attach and higher quality MIPS on transaction processing, all of which support higher (accelerating) growth in the future," Mohan wrote. Wedbush is also bullish on IBM shares, raising its price target from $300 to $325 with an outperform rating. More Tech Stocks: Amazon tries to make AI great again (or maybe for the first time) Veteran portfolio manager raises eyebrows with latest Meta Platforms move Google plans major AI shift after Meta's surprising $14 billion move IBM remains "one of our top software names to own as the AI Revolution accelerates over the coming years," Wedbush analyst Daniel Ives wrote in a research report published on June 20. "While the stock has had a great run so far in 2025, we believe IBM is still under owned and in the early stages of a renaissance of growth with AI the key driver." The average price target on IBM shares from 14 analysts tracked by TipRanks is $ revamp IBM stock price target after AI-fueled new high first appeared on TheStreet on Jun 21, 2025 This story was originally reported by TheStreet on Jun 21, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
