Importance of Watson AI
The growing adoption of IBM’s (IBM) Watson AI platform is contributing significantly to the company’s overall business. Demand for AI across industries compelled the leading tech giant to launch Watson AI, which provides useful insights into complex business problems. IBM offers Watson Health, Watson IoT,[1.Internet of Things] and Watson Financial Services to its Fortune 500 customer base.
Watson Financial Services includes regulatory technology and commercial payment offerings. Large financial institutions such as JPMorgan Chase (JPM) are using AI for risk and portfolio optimization. Watson Health, IBM’s key driver, has been adopted widely by government agencies and life science and oncology departments.
Watson AI’s growth has continued to support IBM’s Cognitive Solutions segment, as shown in the graph above. In fiscal Q1 2018, the segment grew 5.9% YoY (year-over-year) to $4.3 billion. In the last five quarters, its revenue has grown at a compound annual rate of 1.4%.
IBM has not expanded Watson AI aggressively, limiting it to the health and financial sectors. The company is still trying to enhance the platform’s AI learning capabilities to improve its prediction skills. The company believes that its slow and steady approach will allow it to improve its AI service and market penetration.
IBM (IBM) is generating profit from its cloud business through strong demand for its Watson AI platform and the ongoing migration of on-premises data to the cloud.
T-Mobile wants to showcase its strength before its first-quarter earnings release. T-Mobile is scheduled to report its first-quarter results on April 25.
Mondelēz (MDLZ) is scheduled to announce its first-quarter earnings results on April 30.
Freeport-McMoRan (FCX) is scheduled to release its first-quarter earnings on April 25.
Ford has risen 8.2% in April so far as compared to 2.6% gains in the S&P 500 Index.
On April 22, natural gas prices settled at $2.52 per MMBtu—1.4% above the lowest closing level for active natural gas futures since June 8, 2016.
Kimberly-Clark (KMB) stock rose 5.4% on April 22 after the company released stronger-than-expected first-quarter results.