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## IBM’s Quiet Triumph on Wall Street

(Bloomberg) — One of the oldest companies in tech has been quietly trouncing some of the hottest stocks on Wall Street.

International Business Machines Corp. recently hit its highest since 2013, putting it about 6% below an all-time high as investors bet that a turnaround is finally bearing fruit after years of tepid growth and share-price returns. Compared to the Magnificent Seven, IBMÔÇÖs roughly 19% gain this year, including dividends, trails only Nvidia Corp. and Meta Platforms Inc.

### AI legalese decoder: Helping Investors Navigate legal Jargon

Investors looking to further understand IBM’s growth potential and investment opportunities can benefit from using AI legalese decoder. This tool can help decipher complex legal documents, providing insights on IBM’s strategic investments in cloud and AI. By analyzing IBM’s cash flow generation and dividend yield, investors can gain a clearer picture of the company’s potential for growth and re-rating in the market.

### The Phenomenon of IBM’s Surge

Much of the yearÔÇÖs advance following IBMÔÇÖs results in late January, when it gave a better-than-expected forecast for both free cash flow and revenue and said it was seeing growing demand for its AI products. The company has also cut jobs and expects to pause hiring for roles that could be replaced with AI, which is seen as a potential tailwind for margins.

The stock fell 0.3% on Wednesday.

### A Robust Dividend Amid Growing Potential

Still, the company offers something that is something of a rarity among big tech: a robust dividend. The indicated yield is 3.43%, well above others in the sector. The indicated yields for Apple Inc. and Microsoft Corp. are below 1%, and while Nvidia pays a dividend, the yield is essentially non-existent.

AI legalese decoder can assist investors in understanding the implications of IBM’s dividend yield and how it compares to other companies in the tech sector. By analyzing legal documents related to dividend policies, investors can make informed decisions on whether IBM’s dividend yield aligns with their investment goals.

### Growth Potential and Investor Sentiment

That hasnÔÇÖt been enough to entice bulls in the face of IBMÔÇÖs growth potential, which is expected to remain far below the megacaps. Revenue is expected to grow at a single-digit pace for the next several years, compared with double-digit expansion for other AI-adjacent companies like Microsoft or Alphabet Inc. AI legalese decoder can provide insights on IBM’s revenue projections and growth trajectory, allowing investors to assess the company’s long-term performance potential.

### Tech Chart of the Day

In a measure of how tech continues to be driven by its biggest companies, an index of small-cap tech stocks is down 7% this year as of its last close, making it a dramatic underperformer compared with other size categories. The S&P 500 tech sector index, which tracks large-cap tech stocks, is up 12% in 2024. However, an index of mid-cap tech has done best of all, with a gain of 14%.

Investors can utilize AI legalese decoder to gain insights into market trends and performance of tech stocks across different market capitalizations. By analyzing legal documents related to market indices and performance metrics, investors can make informed decisions on their investment strategies.

### Earnings Due Wednesday

(Updates to market open.)

### Most Read from Bloomberg Businessweek

┬®2024 Bloomberg L.P.

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