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IBM and Qualcomm are addressing growth areas in cloud computing, AI, and chip innovations. IBM is focusing on hybrid cloud and AI solutions, while Qualcomm specializes in mobile chip designs across various sectors. For fiscal year 2025, IBM expects a sales growth of 6.4% and EPS growth of 7.7%. In contrast, Qualcomm anticipates a sales increase of 12.4% and EPS rising by 16.1%.
Over the past year, IBM’s stock has increased by 24.7%, outperforming its industry growth of 24.6%, while Qualcomm’s stock has decreased by 0.9%. In terms of valuation, IBM shares trade at a forward price/sales ratio of 3.46, lower than Qualcomm’s ratio of 3.86.
Currently, both companies hold a Zacks Rank #3 (Hold), but IBM is viewed as a more attractive investment option due to its stable free cash flow and focus on enterprise SaaS/AI transformation.
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