Companies Involved: IBM (International Business Machines Corporation) and Amazon.com, Inc. (AMZN) are key players in the global cloud computing market. IBM focuses on hybrid cloud and AI solutions, while AWS is known as the most comprehensive cloud platform, offering over 200 services and catering to millions of customers globally.
Recent Developments: IBM has reinforced its partnership with NVIDIA, aiming to enhance AI workloads and launch a new content-aware storage feature for its hybrid cloud services. Meanwhile, Amazon has expanded its Bedrock platform, facilitating easier access to high-performing AI models for enterprises as part of its ongoing investment in AI infrastructure. Both companies face stiff competition, especially from AWS and Microsoft Azure.
Financial Outlook: The Zacks Consensus Estimate predicts IBM’s 2025 sales and EPS will grow by 5.5% and 6% respectively, while Amazon’s will grow by 8.9% and 12.7%. Over the past year, IBM’s stock has increased by 52.6%, whereas Amazon’s rose by 16.9%. In terms of valuation, IBM shares trade at a price/earnings ratio of 25.05, lower than Amazon’s 33.38, making IBM appear more attractive based on current metrics.
