IBM has significant upside; trading 30% below 52-week high with $12.5B AI order book may lead to positive earnings surprise.

As you know, I mentioned today that there are two that look like winning deals to me, namely IBM and Home Depot.

It is clearly part of the AI trading here, but it is still well below its 52-week high. Yes, I have been watching and recommending IBM, and the stock has been very volatile because of what is happening in quantum computing, but they have a strong order book in artificial intelligence worth $12.5 billion.

They are currently trading 30% below their 52-week high. We have earnings announcements coming in a few weeks. They are focusing more on profitable business areas, helping traditional companies to safely adapt to AI-based enterprise software.

I think their earnings last quarter were not very well received, but I think they may surprise the markets, and we may see a significant increase in the share price.

IBM also offers dividends with a yield exceeding 3%. Well, I do see significant upside potential here, but don't forget that IBM has increased its dividends over the past 31 years.