Pay Close Attention to This Crucial Revenue Source for Artificial Intelligence (AI) Giant IBM
The mostly forgotten former technology titan may quietly be sitting on the next big thing in AI's ongoing evolution.
When most investors think of artificial intelligence stocks, Nvidia is a top-of-mind name. And rightfully so. Its hardware is at the heart of most AI data centers. Or maybe it's Microsoft or Alphabet's, both of which offer popular AI-powered virtual assistants free of charge.
IBM (NYSE: IBM), on the other hand, doesn't come up much during discussions of artificial intelligence's likely future. However, maybe it should. Smart investors would at least put the company on their AI radars anyway. Here's why.
To be clear, IBM doesn't hold a candle to Nvidia's share of the AI data center market. As noted by the Motley Fool's own in-house research team, Nvidia generated more than $35 billion worth of AI data center revenue for the final quarter of last year, while Intel, Advanced Micro Devices, and IBM each only reported on the order of $4 billion. Nvidia is also the only one of these hardware makers to see any meaningful net growth of their AI data center business over the course of the past several years.
