DigiCert previously announced its involvement in the NIST National Cybersecurity Center of Excellence project on Secure Software Development, collaborating with major technology firms including IBM, Google, Microsoft, and others to advance DevSecOps practices and integrated supply chain security solutions.
This joint government-backed initiative aims to facilitate real-world, independent evaluation of secure software development tools, marking a rare coming together of competitors to address critical vulnerabilities in the software supply chain.
We’ll examine how IBM’s participation in this federal cybersecurity project intersects with its current investment thesis focused on AI and hybrid cloud.
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The core thesis for IBM shareholders centers on the company’s ability to drive growth through hybrid cloud and AI solutions while managing legacy business transitions. This recent news of IBM joining a major federal cyber initiative with NIST, Google, and Microsoft is positive for strengthening its partnerships, though it does not directly address the most pressing short-term catalyst, accelerating growth in recurring AI and hybrid cloud revenues, or its ongoing risk of macroeconomic slowdown that could impact consulting and software segments. Among recent events, IBM’s planned US$150 billion investment in US technology and economic growth stands out. This announcement reinforces IBM’s commitment to long-term innovation and job creation, factors that support its bid to gain share in high-value technology markets. However, compared to the cybersecurity project, this investment moves the dial more on infrastructure and domestic capabilities, with nearer-term catalysts such as product launches and cloud adoption likely to have a greater impact on near-term financial results. On the other hand, investors should also be aware that if competitive pressures in the cloud intensify and IBM continues to lose out on large-scale cloud-native contracts, the story could look quite different for shareholders…
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International Business Machines’ outlook anticipates $74.4 billion in revenue and $10.6 billion in earnings by 2028. This scenario assumes 5.1% annual revenue growth and an earnings increase of $4.7 billion from the current $5.9 billion.
Uncover how International Business Machines’ forecasts yield a $281.77 fair value, a 16% upside to its current price.
