IBM Stock News

There's no question that artificial intelligence (AI) has real use cases and that the latest AI models can do some incredible things. But it's important to remember that the technology has limitations.

International Business Machines Corporation (NYSE: IBM) was one of America's greatest, if not its greatest, tech companies.

With all the noise and debate about the current tariff war, you could be forgiven for missing a pair of important shareholder announcements from two tech sector titans. In a matter of only a few days recently, both Apple (AAPL 0.68%) and IBM (IBM -1.56%) declared dividend raises.

Artificial intelligence (AI) is both a helpful technology and an incredibly complicated one. AI agents take both qualities to the next level.

Investors love dividend stocks, especially high-yield ones, because they offer significant income streams and have substantial total return potential.

I see International Business Machines' fundamentals and price action largely disconnected. To be honest, not a major surprise in today's markets, where I see this disconnection more and more. This is quite evident since mid-2023 - the start of the AI boom. Since then, IBM's revenue growth has been modest compared to some of its peers. Other fundamentals have shown similar, mediocre performance.

US stocks remain undecided on Wednesday after the Federal Reserve left interest rates unchanged, citing increased uncertainty surrounding the world's largest economy in 2025. Amidst a difficult macro environment, Jefferies analysts believe that dividend stocks will emerge as winners in the back half of this year, as they historically do during challenging times.

Arvind Krishna, the CEO of IBM, said his company's investment in artificial intelligence (AI) has ultimately led to a rise in employment in the firm.