IBM Expands Its AI Reach with Major Oracle and Lumen Partnerships

Tech company IBM (IBM) is pushing harder into artificial intelligence with two major partnerships. The first one is with Oracle (ORCL) while the other is with Lumen Technologies (LUMN). With Oracle, IBM is bringing its watsonx AI platform to Oracle Cloud Infrastructure (OCI) in order to make AI-driven business processes easier and more efficient. Starting in July, IBM’s watsonx Orchestrate will be available on OCI and allow companies to create and manage AI agents (software systems that use AI to act on behalf of users) that work across both Oracle and non-Oracle apps.

In a separate move, IBM has partnered with Lumen Technologies to bring AI capabilities to the edge, which basically means closer to where data is created. By combining IBM’s watsonx with Lumen’s fast, low-latency Edge Cloud infrastructure, businesses in industries like finance, healthcare, manufacturing, and retail can process large amounts of data in real time. This can reduce costs, improve security, and make customer experiences smarter and faster.

These partnerships demonstrate how IBM is expanding its presence in both cloud and edge computing as AI adoption grows. Indeed, the Oracle collaboration is meant to integrate AI into large enterprise workflows and cloud services, while the Lumen partnership focuses on enabling real-time AI processing. Together, these moves show that IBM is working towards becoming a serious player in the AI industry.

What Is the Target Price for IBM?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on eight Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $258.79 per share implies 3.9% upside potential.

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