We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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's Edge AI Expansion With Datavault AI: Will it Boost Profits?
Read MoreHide Full Article
Key Takeaways
IBM expands its watsonx AI to Datavault AI for secure edge computing in NY and Philadelphia.
watsonx enables real-time data processing, analysis, and monetization with enhanced cybersecurity.
The platform upgrade strengthens IBM's AI capabilities across cloud, edge, and on-premises environments.
International Business Machines Corporation ((IBM - Free Report) ) has extended its partnership with Datavault AI to deliver a secure, ultra-low-latency enterprise AI at the edge in New York and Philadelphia, using SanQtum AI’s zero-trust micro data centers powered by its watsonx AI technology. The collaboration enables customers to securely process, analyze, and monetize data in real time with enhanced cybersecurity, minimizing dependence on public cloud infrastructure.
IBM’s watsonx platform offers enterprise-grade AI features, including trusted foundation models, real-time data analytics, built-in governance, security, and hybrid deployment across cloud, on-premises, and edge environments. With this deal, watsonx enables Datavault AI to transform raw data into trusted, monetizable digital assets in real time through secure, low-latency edge processing, scoring, and tokenization.
The company is upgrading its watsonx platform to support more advanced AI models, stronger security, and better performance across cloud, edge, and on-premises environments. These enhancements position watsonx as a future-ready enterprise AI platform that meets growing demands for real-time, secure, and scalable AI solutions.
IBM’s focus on watsonx AI portfolio in edge computing environments has strengthened its position in enterprise AI beyond traditional cloud deployments. It also allows the company to enter into high-growth markets, such as secure data monetization, digital assets, and zero-trust infrastructure, driving long-term enterprise and government demand.
How Are Competitors Performing in the Advanced AI Market?
IBM faces competition from Amazon.com, Inc. ((AMZN - Free Report) ) and Alphabet Inc. ((GOOGL - Free Report) ). Amazon Web Services (“AWS”) partnered with OpenAI to provide cloud infrastructure for running and scaling advanced AI workloads. AWS partnered with Infosys to help enterprises adopt generative AI by integrating Infosys’s Topaz AI platform with AWS AI services. Amazon is expanding in generative AI with AWS Bedrock, enabling customers to build apps using foundation models without managing infrastructure.
Google has partnered with retailers like Walmart, Shopify, and Wayfair to enable AI-powered shopping directly through its Gemini chatbot. Google Cloud teamed up with Vodacom to expand AI capabilities in Africa, using cloud and AI tools to support businesses and innovation. The company is using Vertex AI to help businesses build, deploy, and scale machine learning models quickly and efficiently on Google Cloud.
IBM’s Price Performance, Valuation & Estimates
IBM shares have gained 40% over the past year compared with the industry’s growth of 95.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, IBM trades at a forward price-to-sales ratio of 4.04, below the industry average.
Image Source: Zacks Investment Research
Earnings estimates for 2025 have increased 1% to $11.39 over the past 60 days, while the same for 2026 have also rose 1.4% to $12.24.
Image: Bigstock
IBM's Edge AI Expansion With Datavault AI: Will it Boost Profits?
Key Takeaways
International Business Machines Corporation ((IBM - Free Report) ) has extended its partnership with Datavault AI to deliver a secure, ultra-low-latency enterprise AI at the edge in New York and Philadelphia, using SanQtum AI’s zero-trust micro data centers powered by its watsonx AI technology. The collaboration enables customers to securely process, analyze, and monetize data in real time with enhanced cybersecurity, minimizing dependence on public cloud infrastructure.
IBM’s watsonx platform offers enterprise-grade AI features, including trusted foundation models, real-time data analytics, built-in governance, security, and hybrid deployment across cloud, on-premises, and edge environments. With this deal, watsonx enables Datavault AI to transform raw data into trusted, monetizable digital assets in real time through secure, low-latency edge processing, scoring, and tokenization.
The company is upgrading its watsonx platform to support more advanced AI models, stronger security, and better performance across cloud, edge, and on-premises environments. These enhancements position watsonx as a future-ready enterprise AI platform that meets growing demands for real-time, secure, and scalable AI solutions.
IBM’s focus on watsonx AI portfolio in edge computing environments has strengthened its position in enterprise AI beyond traditional cloud deployments. It also allows the company to enter into high-growth markets, such as secure data monetization, digital assets, and zero-trust infrastructure, driving long-term enterprise and government demand.
How Are Competitors Performing in the Advanced AI Market?
IBM faces competition from Amazon.com, Inc. ((AMZN - Free Report) ) and Alphabet Inc. ((GOOGL - Free Report) ). Amazon Web Services (“AWS”) partnered with OpenAI to provide cloud infrastructure for running and scaling advanced AI workloads. AWS partnered with Infosys to help enterprises adopt generative AI by integrating Infosys’s Topaz AI platform with AWS AI services. Amazon is expanding in generative AI with AWS Bedrock, enabling customers to build apps using foundation models without managing infrastructure.
Google has partnered with retailers like Walmart, Shopify, and Wayfair to enable AI-powered shopping directly through its Gemini chatbot. Google Cloud teamed up with Vodacom to expand AI capabilities in Africa, using cloud and AI tools to support businesses and innovation. The company is using Vertex AI to help businesses build, deploy, and scale machine learning models quickly and efficiently on Google Cloud.
IBM’s Price Performance, Valuation & Estimates
IBM shares have gained 40% over the past year compared with the industry’s growth of 95.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, IBM trades at a forward price-to-sales ratio of 4.04, below the industry average.
Image Source: Zacks Investment Research
Earnings estimates for 2025 have increased 1% to $11.39 over the past 60 days, while the same for 2026 have also rose 1.4% to $12.24.
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.