Will IBM’s Sovereign Core Software Release Propel Its Stock Prices?

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International Business Machines Corporation (IBM) has launched Sovereign Core, an AI-ready software aimed at helping enterprises, governments, and service providers build secure, self-governing technology environments. This new software comes in response to increasing regulations and the growing need for organizations to maintain control over their systems while ensuring security and compliance.

Sovereign Core is built on Red Hat’s open-source framework and offers continuous security and observability without reliance on external contracts. It enables local AI model operations, facilitating identity and access management across large environments. Notably, IBM aims to provide control over critical data and infrastructure while simplifying management through a user-friendly portal.

In terms of market performance, IBM shares have increased by 33.8% in the past year, contrasting with the industry average growth of 92.7%. Currently, IBM trades at a forward price-to-sales ratio of 3.95, below the industry norm, while earnings estimates for 2025 remain steady at $11.38.

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