Retail Investors’ 2 Favorite AI Stocks for the Long Term: Alphabet, IBM
Two AI-focused stocks that retail investors on Reddit are interested in for the long term are International Business Machines Corporation (IBM) and Alphabet Inc. (GOOG). IBM has caught the attention of these investors due to several factors, including its position in enterprise accounts, strong reputation, and valuation and dividend.
The forward non-GAAP P/E of 19.12 is 15.72% below the sector median, while the forward GAAP P/E of 23.13 is 21.10% below the sector median. IBM also boasts strong growth in its software segment, particularly in the Data business, which grew by 18% in the second quarter. Additionally, IBM's hybrid cloud offerings and investment in quantum computing make it a promising choice for the next five years.
However, the threat of AI disrupting some of IBM's operations, such as the potential for AI to modernize COBOL code used in the mainframe, cannot be ignored.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
