Shares of hybrid cloud provider and enterprise artificial intelligence player IBM (IBM) -) have been surging recently, with its stock approaching highs it has not seen since 2017.
The stock, currently trading at roughly $163 per share, is up more than 12% since its Oct. 31 close of $144 per share.
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Reporting third-quarter results in October, the company posted $14.8 billion in revenue, a 4.6% increase, and an operating profit margin of 55.5%.
"Technology remains a critical source of competitive differentiation and progress for organizations around the world," Arvind Krishna, IBM chairman and CEO, said in a statement at the time. "Clients are increasingly adopting our watsonx AI and data platform along with our hybrid cloud solutions to unlock productivity and operational efficiency."
The company said that it expects to see constant currency revenue growth between 3% and 5% for 2023.
Jim Cramer, host of CNBC's "Mad Money," said Thursday that Krishna has orchestrated a "real turn" in the company.
"I think the stock is inexpensive," Cramer said. "And I know — I hope I don't regret this — but I think it's actually a pretty good stock here and I wish that I had pounced on it for my trust at $145."
The average analyst price target for IBM is pegged at $156.71, below the stock's current levels.
Wedbush Securities analyst Dan Ives, in a Friday note, said that he believes the tech bull market has officially begun. Ives predicted that AI-driven spending will increase by a minimum of 20% next year, pushing tech stocks up by more than 20% throughout 2024.
"We view AI as the most transformative technology trend since the start of the Internet in 1995 and believe many on the Street are still underestimating the $1 trillion of AI spend set to happen over the next decade," Ives said.
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