This Once Hated Tech Stock Is About To Surge
There’s a hum in Tennessee night air now-a-days.
Not to worry. It’s not the sound of anything sinister.
In fact, the source of this low hum is something to celebrate.
That’s right folks we’re number 1.
In supercomputers at least.
China laid claim to the world’s fastest supercomputer for quite a while.
The U.S. however, supplanted the Red Dragon, planting its flag like it were Neil Armstrong on the surface of the moon.
Introducing IBM’s newest fully operational supercomputer, Summit.
IBM claims Summit is “the world’s most powerful and smartest scientific supercomputer,” as reported by TechCrunch.
Tech Times notes, Summit is a “machine capable of 200 quadrillion calculations per second.”
The buzz this new computer is creating is more than justified.
IBM Is Back
Six long years have passed since the U.S. held the top spot in supercomputers.
And this accomplishment wouldn’t be possible if not for a great American company, and the U.S. Department of Energy.
That company is International Business Machines (NYSE: IBM).
The name might sound globalist, but don’t let that fool you.
IBM is as American as it gets.
And IBM’s been crunching America’s data ever since the national census got too big to handle without computers.
That’s a long, long, time ago
Today, IBM is sticking it to China with a massive new data farm consisting of 4,608 IBM servers.
And it’s Summit supercomputer is artificial intelligence and machine learning unlike anyone has ever done before.
According to Jeff Nichols, the associate lab director at the U.S. Department of Energy’s Oak Ridge National Laboratory:
“Summit’s AI-optimized hardware gives researchers an incredible platform for analyzing massive datasets and creating intelligent software to accelerate the pace of discovery.”
The last time IBM had a supercomputer make headlines like this was back in May of 1997.
Folks may remember that’s when IBM’s Deep Blue computer bested the World Chess champion Garry Kasparov.
IBM stock ticked up for the rest of ‘97, rising from its April 30, 1997 close of $34.19, to a year end price of $52.31.
A 53% gain.
And there’s good reason to think the Summit catalyst could have the same effect on IBM shares today.
That would mean IBM has a realistic price target of $218.
The stock currently trades at $143 this morning.
And Summit isn’t the only good news for IBM and its shareholders.
Summit, Sierra, and Capital Investment Catalysts
The U.S. Department of Energy plans to also enlist the power of IBM’s second most powerful computing system, code named Sierra, at its Lawrence Livermore National Laboratory.
This could set off a cascade of purchases for IBM’s new machines.
But if you need more convincing, here’s a good one.
The biggest critique of IBM stock recently is that its price, considering the current state of its business, is too expensive.
This has turned institutional investors away and kept the stock trading down and sideways in 2018.
But today, the Utah Herald reported Marathon Capital Management raised its IBM holdings by $1.49 Million.
A small investment for such a large cap stock, yes.
But this could be the spark that sets off more capital investment from large institutions. Which could help IBM shares surge during the second half of 2018.
IBM’s return to supercomputing dominance is a major barrier to break through.
And things should be great for IBM on the other side too.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily
Editor’s note: IBM is not an official recommendation, and we will not be tracking it.
However we do believe this stock has great days ahead for the reasons outlined today.
But, be sure you do your own research to ensure any move meets your needs, and never bet more money than you can afford to lose.