IBM's strong quarterly results, driven by its growing AI business, highlight a significant trend of legacy technology systems being revitalized by artificial intelligence. This shift creates a compelling investment case for companies specializing in enterprise-level AI integration, data management, and hybrid cloud solutions.
Published on July 24
IBM's $7.5 billion AI business proves that legacy tech transformation is real and profitable. Companies enabling this shift are positioned to capture massive enterprise spending on AI integration.
Most large organizations are still in early stages of AI adoption. This creates a multi-year opportunity for companies providing the infrastructure and services needed for enterprise AI transformation.
While everyone focuses on AI creators, the real winners might be the companies that help existing businesses integrate AI into their operations. These picks target that overlooked opportunity.
Legacy technology companies are experiencing a renaissance through AI integration. IBM's recent strong quarterly results, driven by over $7.5 billion in AI business, demonstrate how established enterprises can successfully pivot to high-growth AI areas. This creates opportunities for companies that facilitate enterprise-level AI adoption across data management, hybrid cloud infrastructure, and consulting services.
This group focuses on the enterprise AI transformation cycle, where large organizations are upgrading their existing systems with artificial intelligence. These stocks represent companies positioned across the value chain - from data platforms to cloud infrastructure to AI-powered services. The theme captures businesses that enable rather than compete with the AI transformation happening in corporate America.
These companies were handpicked as critical enablers of the enterprise AI shift. Each business provides specialized solutions that large organizations need when integrating AI into their existing systems. Professional analysts selected these stocks based on their strategic positioning to benefit from the widespread technological upgrade cycle happening across industries.
Concise interpretation of the basket's market capitalisation and investor implications.
IBM: $262.74B
CRM: $250.77B
SNOW: $83.86B
Get the full story on this Basket. Read our detailed article on its risks and potential.
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SK Hynix has unveiled a record-breaking 40 trillion won share buyback fueled by soaring demand for its AI memory chips. This historic capital return creates a compelling investment theme centered on high-bandwidth memory producers and the specialized equipment manufacturers that enable their advanced production.
Home Depot's recent earnings beat highlights consistent consumer spending on smaller household repair and maintenance projects. This ongoing trend presents promising opportunities for various home improvement retailers and building material suppliers.
BHP Group recently posted a massive earnings beat driven by record copper profitability, allowing the miner to raise its dividend to a four-year high. This performance highlights a structural shift toward electrification metals, creating opportunities for industrial equipment suppliers and competing copper producers.
Here are a few of the assets in this group. Create an account to unlock the full list.
Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.
If you invested across these assets:
In 12 months it might be worth:
+47.53%
On average, analysts expect assets in this group to grow 47.53% over the next year.
11 of 17 assets in this group are rated Buy by professional analysts.
