IBM's AI-driven Revenue Surge Propels Shares to 20-Year High

IBM shares surged to a more than 10-year high after reporting a strong revenue outlook driven by robust demand for its artificial intelligence (AI) services, particularly from its generative AI business. The company's stock rose nearly 13%, adding about $20 billion to its market capitalization, and is on track for its biggest daily percentage gain since March 2020. At least eight Wall Street analysts raised their price targets for IBM's stock, with the median price target at $144.50 and an average recommendation of "hold". IBM's stock is currently trading at about 17 times its next 12-month's expected earnings, and its AI-related bookings are expected to contribute to a 4%-6% revenue growth in 2024.