We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
IBM Gets Patent for Machine Learning Self-Driving Technology
Read MoreHide Full Article
International Business Machines Corporation (IBM - Free Report) recently announced that it has obtained a patent for a machine learning system, which is capable of switching control of an autonomous vehicle between a vehicle control processor and a human driver at the time of an emergency.
For example, if the autonomous vehicle experiences some sort of an operational glitch such as a burned out headlight, a faulty braking system, poor visibility and bad road conditions, the system will evaluate whether the driver or the on-board self driving vehicle control processor is positioned to handle the situation and shift the control accordingly.
We note that IBM has been taking huge strides in the autonomous driving technology space. In Jun 2016, the company collaborated with Local Motors, an AZ-based car maker to power the latter’s electric minibus – Olli.
However, shares of IBM have underperformed the Zacks Computer - Integrated Systems industry over the last one year. While the industry appreciated 19%, the stock gained 14%.
The underperformance of the stock could be due to its time consuming transition to the cloud, weakness in traditional businesses, lower IT spending worldwide as well as an increasing competitive landscape.
Scope for IBM in Autonomous Driving
As per a report by the Boston Consulting Group,the autonomous driving technology market is estimated to reach a whopping $42 billion by 2025, which is further expected to grow to $77 billion by 2035.
Competition is brewing with the presence of major players such as Alphabet (GOOGL - Free Report) , Intel (INTC - Free Report) , which recently acquired Mobileye, NVIDIA (NVDA - Free Report) and Tesla.
However, we expect that with such patent wins, IBM is well positioned to take the competition head on through licensing the technology to third parties, which augurs well for the company in the long run.
International Business Machines Corporation Revenue (TTM)
During the last reported quarter, IBM’s Cognitive Solutions (solutions software and transaction processing software) revenues grew 1.4% on a year-over-year basis (up 2.2% at constant currency) to $5.30 billion.
Solutions software growth was driven primarily by analytics (Watson platform, Big Data, Information Integration).
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
IBM Gets Patent for Machine Learning Self-Driving Technology
International Business Machines Corporation (IBM - Free Report) recently announced that it has obtained a patent for a machine learning system, which is capable of switching control of an autonomous vehicle between a vehicle control processor and a human driver at the time of an emergency.
For example, if the autonomous vehicle experiences some sort of an operational glitch such as a burned out headlight, a faulty braking system, poor visibility and bad road conditions, the system will evaluate whether the driver or the on-board self driving vehicle control processor is positioned to handle the situation and shift the control accordingly.
We note that IBM has been taking huge strides in the autonomous driving technology space. In Jun 2016, the company collaborated with Local Motors, an AZ-based car maker to power the latter’s electric minibus – Olli.
However, shares of IBM have underperformed the Zacks Computer - Integrated Systems industry over the last one year. While the industry appreciated 19%, the stock gained 14%.
The underperformance of the stock could be due to its time consuming transition to the cloud, weakness in traditional businesses, lower IT spending worldwide as well as an increasing competitive landscape.
Scope for IBM in Autonomous Driving
As per a report by the Boston Consulting Group,the autonomous driving technology market is estimated to reach a whopping $42 billion by 2025, which is further expected to grow to $77 billion by 2035.
Competition is brewing with the presence of major players such as Alphabet (GOOGL - Free Report) , Intel (INTC - Free Report) , which recently acquired Mobileye, NVIDIA (NVDA - Free Report) and Tesla.
However, we expect that with such patent wins, IBM is well positioned to take the competition head on through licensing the technology to third parties, which augurs well for the company in the long run.
International Business Machines Corporation Revenue (TTM)
International Business Machines Corporation Revenue (TTM) | International Business Machines Corporation Quote
During the last reported quarter, IBM’s Cognitive Solutions (solutions software and transaction processing software) revenues grew 1.4% on a year-over-year basis (up 2.2% at constant currency) to $5.30 billion.
Solutions software growth was driven primarily by analytics (Watson platform, Big Data, Information Integration).
Zacks Rank
At present, IBM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>