AI has taken Wall Street by storm, and many companies are looking to incorporate the technology into their businesses. IBM (IBM) is no exception, but the tech giant's CEO suggests its technology may not be fully factored into its valuation.
Yahoo Finance anchors Brian Sozzi and Akiko Fujita join IBM CEO Arvind Krishna at the Milken Global Institute Annual Conference to explain why IBM's valuation isn't on par with other AI stocks .
“We're building, we're staying in the right place with trust, and we're working with enterprise, hybrid cloud, AI, and in the future, quantum. “However, I acknowledge that quantum is still three to five years away and AI is in its infancy,'' Krishna says.
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This post was written by Nicholas Jacobino
video transcript
It looks like you're just listening here. IBM is working on something really cool and packable with I. Why do you think IBM's valuation may not be on par with or reflective of other AI companies? Well then, let's go. Wait until the cup is half full before answering the questions directly. First of all, I think we've had a pretty good performance over the last four years. Well, if you look at the last four years, I think there's been probably $60 to $80 billion worth of additions. Well, it's the total corporate value. So I think that's good. Now it does not fulfill his one desire of ours. So, let me acknowledge that point. But as we start to progress, I think we have to make overall revenue and cash flow performance more stable. I think the cash flow performance has been pretty consistent, but perhaps the revenue performance needs to be a little more consistent. And if we do that, I think we can accomplish both. Multiple reratings are important, as well as growth with underlying cash flow and earnings growth. So I think those are the two elements. We are very confident that our strategy is in the right place. we are building. we are working on it. Stay where we trust. We will work with Enterprise Hybrid Cloud AI and Quantum in the future. By the way, I don't think Quantum or I are actually where they are at a good enough price. But I'm like Quantum is still three to five years away, but I'm in the early innings. I'll use a baseball analogy. A. I feel like it's the first inning of a game. I don't really know what will happen. Cloud is more like he's five times or he's six times. So if you have a pretty good idea, it's not finished yet, but it's a pretty good idea.
