Somebody's quite bullish, geeeeez.
https://www.fool.com/investing/2024/09/07/where-will-ibm-be-in-5-years/
3 replies (most recent on top)
I don’t have a lot of faith in any of these predictions or outlooks. There is a tremendous amount of competition out there in the AI space. Historically IBM has been slow to move and throttles their investment.
Split into two companies. The consulting company will have another made up name with no vowels. The technology company will retain the IBM name but will be desperately trying to sell itself to one of the hyperscalers.
The good news: we will likely still be in business. Arvind will have been gone for about three years, and the number of RAs will go dramatically down. But by then, the entire US population will be around 30k and there won't be a lot more people left to lay off. They will need to maintain a certain US presence if they want to hold onto the federal account.
AI will have found its proper niche. IBM will find some customers for it, but will once again be facing declining revenue. It will become completely indispensable, but people recognize how ridiculous the hype was.
We will be almost entirely a mainframe company, which is basically what we are right now. If we can stop buying companies, we might even be comfortable living within this little niche; the problem is that every major purchase has to be paid for somehow. And it's sure not coming out of the CEO's bonus.