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Can IBM Power11 Server Redefine Business Application Processes?

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Key Takeaways

  • IBM launched Power11 with up to 55% better core performance and 45% more capacity over predecessors.
  • Power11 uses generative AI for patching and workload automation, reducing risk and freeing IT resources.
  • AI-ready infrastructure enables IBM Power to scale mission-critical workloads.

International Business Machines Corporation (IBM - Free Report) has launched IBM Power11, the next-generation IBM Power server, which offers up to 55% better core performance and up to 45% more capacity compared to its predecessors. The offering facilitates business enterprises to achieve higher resiliency, performance and scalability for seamless hybrid deployment on-premises or in the IBM Cloud. This, in turn, enables firms to reduce complexity, improve workload efficiency and gain hybrid cloud flexibility to maintain competitiveness in the AI era.

Leveraging advanced technologies like autonomous patching and automated workload movement using generative AI, IBM Power enables planned system maintenance to avoid costly planned downtime and help reduce operational risk. It interoperates with IBM Concert using generative AI to provide actionable insights and automate remediation. This reduces operational costs for patching vulnerabilities through fast response times and higher efficiency for securing all systems, freeing up IT resources and manpower, which then can be used for other productive purposes. 

In addition, the IBM Power Cyber Vault solution enables guaranteed ransomware threat detection in less than a minute with proactive immutable snapshots that are automatically captured, stored and tested on a custom-defined schedule. Boasting AI-ready infrastructure with built-in, on-chip acceleration, IBM Power also helps scale operations to support mission-critical AI workloads with twice the performance per watt versus comparable x86 servers.

Other Blue-Chip Tech Firms Focusing on AI

Amazon.com, Inc.’s (AMZN - Free Report) strategic expansion of its Bedrock platform has positioned it as a frontrunner in the enterprise AI race. Amazon Bedrock has emerged as a game-changing, fully managed service that offers enterprises seamless access to high-performing foundation models from leading AI companies. The platform's recent developments, including automated reasoning checks and multi-agent collaboration capabilities, address critical challenges in AI adoption while opening new revenue streams for Amazon's cloud division.

Microsoft Corporation (MSFT - Free Report) is striving to maintain its competitive edge in AI with the introduction of the Agent Store, which creates a new marketplace for AI-powered workplace assistants. The platform already features more than 70 agents and provides developers with monetization opportunities through Microsoft 365 Copilot integration. The Azure AI Foundry application and agent development hub has now been adopted by developers at more than 70,000 enterprises and digital-native companies. Microsoft's Azure AI Agent Service has been utilized by more than 10,000 organizations to build, deploy and scale agents.

IBM’s Price Performance, Valuation and Estimates

IBM has surged 63.3% over the past year compared with 4.3% growth for the industry.

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From a valuation standpoint, IBM trades at a forward price-to-sales ratio of 3.98, slightly above the industry.

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The Zacks Consensus Estimate for IBM’s earnings for 2025 has remained static over the past 60 days.

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Image Source: Zacks Investment Research

IBM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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