IBM watsonx to Support AI Initiative in Saudi Arabia: Stock to Gain?

International Business Machines Corporation IBM recently announced that it has joined forces with Lenovo to support and accelerate the development of generative-AI infrastructure in Saudi Arabia. Lenovo, a global technology juggernaut, boasts an extensive portfolio of AI-enabled, AI-optimized products that include smartphones, PCs, workstations and infrastructures, like servers, storage, high-performance computing and software-defined infrastructure. IBM is the leader in the AI space and its robust portfolio of watsonx AI products expedites the impact of generative AI in critical workflows to boost productivity. The solutions facilitate development of responsible AI with trusted enterprise data. Its employ transparent technology and advanced-security controls to ensure easy compliance and enable AI deployment with minimal disruptions to existing systems. This effectively accelerate business transformation and increase efficiency.IBM and Lenovo have a strong foundation of joint innovation, built upon decades-old collaboration. In the recent venture, IBM will combine its watsonx AI portfolio with Lenovo’s infrastructure solutions to deliver tailored AI solutions for distinct requirements in Saudi Arabia. Access to leading AI capabilities will significantly improve decision-making process of government and business clients, and improve public services nationwide. Key focused areas for AI applications are fraud detection, customer service, code modernization, IT operations and public safety.Through IBM watsonx, clients will be able to access the Saudi Data and Artificial Intelligence Authority open-source Arabic Large Language Model, and train and tune them to support their AI workloads. These AI workloads will efficiently run on Lenovo’s infrastructure solutions for both on-premise and cloud use cases.Will IBM Stock Benefit From This Collaboration?With comprehensive hybrid cloud, AI and consulting expertise, IBM has strong presence worldwide. Around 4000 government and corporate customers across industries such as financial services, telecommunications and healthcare leverage IBM solutions to accelerate digital transformation, streamline workflows, optimize costs and augment their competitive edge. IBM is betting big on the watsonx platform, which is the core-technology platform for its AI capabilities. The company completed the acquisitions of StreamSets and webMethods from Software AG to augment its AI platform and automation capabilities. It has also collaborated with SAP to tap generative-AI technology within the retail industry.Per IDC reports, investment in AI systems will likely cross $300 billion by 2026 worldwide. Recognizing this trend, IBM is steadily advancing its AI portfolio. This bodes well for long-term growth. Its collaboration with Lenovo to support AI advancement in Saudi Arabia will likely strengthen IBM’s presence and boost commercial prospect in the Middle East region.IBM Stock’s Price MovementShares of IBM have gained 33.9% in the past year against the industry’s 2.6% decline.Image Source: Zacks Investment ResearchIBM’s Zacks Rank and Key PicksIBM currently carries a Zacks Rank #3 (Hold).Here are some better-ranked stocks that investors may consider.Keysight Technologies, Inc. KEYS has a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.In the last reported quarter, it delivered an earnings surprise of 5.10%. Keysight is expected to benefit from the growing proliferation of electronic content in vehicles, momentum in space and satellite applications and rising adoption of driver-assistance systems globally.InterDigital IDCC carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 158.41%, in the trailing four quarters.It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.Zillow Group, Inc. ZG carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 9.38%. ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in multi and single-family listings, which is a positive factor.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report InterDigital, Inc. 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