Here's What IBM's Profit Warning Tells Us About the AI Market Right Now -- and What It Means for Investors
IBM said a shift in its customers' spending hurt quarterly earnings.
Overview
Investors have focused closely on artificial intelligence (AI) stocks for the past few years. That's because these players have driven the performance of the S&P 500, extending this three-year-plus bull market. AI stocks have skyrocketed because investors see AI as the next game-changing technology, one that could transform how companies operate and send their earnings soaring.
Some have already delivered results, such as players that sell logic or memory chips, and companies that offer cloud services. They have been the early winners of the AI story. And investors have also bought shares of a wide range of companies that may benefit from AI down the road.
Details
But in recent times, investors have become more hesitant about AI investing, with concerns about growth ahead. Against this backdrop, it's a good idea to look to technology companies for some clues.
Source
Originally published at www.fool.com.