Tech giant IBM (IBM) is collaborating with chip design company Arm Holdings (ARM) to develop new dual-architecture hardware that will help enterprises run AI (artificial intelligence) workloads. The two companies are focused on developing tech for enterprises to ensure greater flexibility and reliability.
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Trade IBM with leverageIBM and Arm Collaborate to Develop Advanced Hardware
The partnership will combine IBM’s expertise in enterprise hardware and software with Arm’s ecosystem for mission-critical enterprise environments, giving customers greater flexibility in deploying and scaling AI workloads.
The collaboration between IBM and Arm Holdings focuses on three major areas:
- Evaluating ways to expand virtualization technologies that enable Arm-based software to run on IBM’s enterprise computing systems.
- Working on ways to enhance the performance and efficiency required by AI and data-intensive workloads.
- Creating shared technology layers to develop broader software ecosystems and ensure greater flexibility in how applications are deployed and managed.
Given the growing rivalry and massive investments in the AI space, technology companies are entering into several key partnerships to ensure rapid innovation to stay competitive.
Wall Street’s Take on IBM and Arm Holdings
Currently, Wall Street has a Strong Buy consensus rating on Arm Holdings, with the average price target of $174.68 indicating 12.65% upside potential. Meanwhile, IBM carries a Moderate Buy consensus rating, with the average price target of $332.94 implying about 37% upside potential. IBM stock has declined 18% year-to-date, while ARM stock has rallied 42%.
