IBM: Fake AI Story Unravels

International Business Machines Corporation is still expensive despite the big selloff as the AI story unravels. Read more on IBM stock here.

As constantly highlighted, International Business Machines Corporation (IBM) has no real AI business. The company is constantly churning customers into AI consulting jobs, but the business wasn't growing. My investment thesis still remains Summary - International Business Machines Corporation cut Q2 guidance, as AI the business lacks real growth now.

- The tech company pre-announced Q2 revenue and EPS missed consensus, with consulting revenue flat and software growth slowing to 5%, undermining the AI-driven growth narrative. - IBM made some promising investments in quantum computing and Project Lightwell, but these projects will not offset current revenue shortfalls for years, leaving IBM vulnerable to further downside. - IBM stock still trades at 18x 2026

EPS with minimal revenue growth forecast, making the stock still expensive despite a sharp pullback from recent highs. - This idea was discussed in more depth with members of my private investing community, Out Fox The Street.

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