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.
Can IBM's Advanced AI and Virtualization Offerings Boost Its Shares?
Read MoreHide Full Article
Key Takeaways
IBM launched Red Hat AI Inference and OpenShift Virtualization Service on IBM Cloud.
IBM's AI Inference manages GPUs, setup, security, governance tools, audit logs and APIs.
IBM's OpenShift Virtualization Service moves virtual machines to Kubernetes, with IBM handling maintenance.
International Business Machines Corporation (IBM - Free Report) has strengthened its artificial intelligence (AI) and hybrid cloud portfolio by launching two new managed services, Red Hat AI Inference and Red Hat OpenShift Virtualization Service on IBM Cloud. The new solutions are designed to support faster AI adoption while improving the security and efficiency of virtual workloads.
IBM’s new Red Hat AI Inference on its Cloud service aims to help enterprises use AI more easily across their operations. The service removes the complexity of handling AI infrastructure, GPUs and software configuration. It supports advanced AI models such as Granite 4.0, Llama 3.3 70B Instruct and Mistral-Small-3.2-24B-Instruct, with support for additional models expected later. The service also includes security features, governance tools, audit logging and easy-to-use APIs (Application Programming Interfaces) to support smooth AI integration across hybrid cloud environments.
The company also introduced Red Hat OpenShift Virtualization Service to enable organizations to modernize their virtual machine environments with better cost management. The platform allows enterprises to migrate and run virtual machine workloads on Red Hat OpenShift using Kubernetes-based infrastructure. IBM will handle upgrades, patching, recovery and system maintenance, reduce operational burden and help organizations prepare for future AI and container-based applications.
The launch highlights IBM’s strong focus on enterprise AI, cloud modernization and virtualization technology. The company is expected to benefit from rising demand for scalable AI and infrastructure solutions.
How Are Competitors Performing in the AI Space?
IBM faces competition from Microsoft Corporation (MSFT - Free Report) and Alphabet Inc. (GOOGL - Free Report) . Microsoft is expanding its AI business through products such as Copilot and Azure AI. The company is also investing heavily in AI infrastructure and enterprise AI solutions. Microsoft continues to strengthen its partnership with OpenAI to support long-term AI growth.
Alphabet is increasing its focus on AI through Gemini AI, AI-powered search and enterprise AI tools. The company has introduced new AI chips and platforms to help businesses build and run AI applications more efficiently. Alphabet is also adding AI features across Google Cloud, Android and Search to improve user experience and productivity.
IBM’s Price Performance, Valuation & Estimates
IBM shares have lost 19.5% over the past year against the industry’s growth of 210.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, IBM trades at a forward price-to-sales ratio of 2.78, below the industry average of 6.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have declined 0.2% to $12.40 per share over the past 60 days, while the same for 2027 have remained static at $13.36.
View the Zacks #1 Rank List
Image: Bigstock
Can IBM's Advanced AI and Virtualization Offerings Boost Its Shares?
Key Takeaways
International Business Machines Corporation (IBM - Free Report) has strengthened its artificial intelligence (AI) and hybrid cloud portfolio by launching two new managed services, Red Hat AI Inference and Red Hat OpenShift Virtualization Service on IBM Cloud. The new solutions are designed to support faster AI adoption while improving the security and efficiency of virtual workloads.
IBM’s new Red Hat AI Inference on its Cloud service aims to help enterprises use AI more easily across their operations. The service removes the complexity of handling AI infrastructure, GPUs and software configuration. It supports advanced AI models such as Granite 4.0, Llama 3.3 70B Instruct and Mistral-Small-3.2-24B-Instruct, with support for additional models expected later. The service also includes security features, governance tools, audit logging and easy-to-use APIs (Application Programming Interfaces) to support smooth AI integration across hybrid cloud environments.
The company also introduced Red Hat OpenShift Virtualization Service to enable organizations to modernize their virtual machine environments with better cost management. The platform allows enterprises to migrate and run virtual machine workloads on Red Hat OpenShift using Kubernetes-based infrastructure. IBM will handle upgrades, patching, recovery and system maintenance, reduce operational burden and help organizations prepare for future AI and container-based applications.
The launch highlights IBM’s strong focus on enterprise AI, cloud modernization and virtualization technology. The company is expected to benefit from rising demand for scalable AI and infrastructure solutions.
How Are Competitors Performing in the AI Space?
IBM faces competition from Microsoft Corporation (MSFT - Free Report) and Alphabet Inc. (GOOGL - Free Report) . Microsoft is expanding its AI business through products such as Copilot and Azure AI. The company is also investing heavily in AI infrastructure and enterprise AI solutions. Microsoft continues to strengthen its partnership with OpenAI to support long-term AI growth.
Alphabet is increasing its focus on AI through Gemini AI, AI-powered search and enterprise AI tools. The company has introduced new AI chips and platforms to help businesses build and run AI applications more efficiently. Alphabet is also adding AI features across Google Cloud, Android and Search to improve user experience and productivity.
IBM’s Price Performance, Valuation & Estimates
IBM shares have lost 19.5% over the past year against the industry’s growth of 210.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, IBM trades at a forward price-to-sales ratio of 2.78, below the industry average of 6.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have declined 0.2% to $12.40 per share over the past 60 days, while the same for 2027 have remained static at $13.36.
Image Source: Zacks Investment Research
IBM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.