IBM Stock Skyrockets After Reporting Strong Earnings: Here's Whose Benefitting

IBM's recent earnings report showed that institutional investors benefited the most from its strong Q4 results.

Institutional investors own 61.19% of the company, reported NASDAQ.

The Vanguard Group, Inc. owns 9.8% of shares, BlackRock owns 77,541,977 shares, and State Street Corporation owns 55,671,883 shares.

Other notable shareholders include Bank of America, Morgan Stanley, and Geode Capital Management LLC.

The company reported adjusted earnings per share of $3.92, surpassing analysts' expectations of $3.79, leading to a significant rise in its stock price.

Its revenue reached $17.55 billion, slightly above forecasts for Q4 results.

After the announcement, IBM's stock jumped 14%, marking its best performance in five years.

A key driver behind this growth is IBM's focus on artificial intelligence (AI), specifically the generative AI sector, which has made over $5 billion in revenues to date.

Other tech stocks like Nvidia, Broadcom, and Micron Technology took a hit after DeepSeek unveiled its cheaper, faster AI model.

DeepSeek raised concerns about reduced demand for high-end chips, leading to declines in the tech stocks.

In contrast, IBM's stock remained vigilant due to its diversified approach to AI, focusing on software and services like its cloud strategy instead of hardware has allowed it to benefit from the growing AI market.

In November of last year, the company released new AI models for businesses.