IBM Jazzes Up GRAMMYs - Watsonx Unleashes AI Magic for Nominee Highlights

International Business Machines Corporation IBM shares are rising on Thursday in the premarket session. 

The tech giant unveiled AI Stories with IBM Watsonx, a generative AI solution co-created alongside the Recording Academy. The solution will generate and scale editorial content around GRAMMY nominees before and during the 66th Annual GRAMMY Awards.

Yesterday, the company reported fourth-quarter financial results after the bell. 

“Client demand for AI is accelerating and our book of business for Watsonx and generative AI roughly doubled from the third to the fourth quarter,” said Arvind Krishna, chairman and CEO of IBM.

IBM said fourth-quarter revenue increased 4% year-over-year to $17.38 billion, which beat the consensus estimate of $17.3 billion, according to Benzinga Pro. The company noted that the continued adoption of hybrid cloud and AI offerings drove its strong revenue results.

IBM ended the fourth quarter with $13.5 billion of cash and marketable securities. Debt, including IBM Financing debt of $11.9 billion, totaled $56.5 billion.

For FY24, the company expects constant currency revenue growth consistent with its mid-single-digit model. IBM expects about $12 billion in free cash flow.

Earlier this month, the tech behemoth was in the headlines for rolling out IBM Consulting Advantage, an AI services platform designed to support IBM consultants in delivering consistency.

When using aspects of IBM Consulting Advantage in an application design, development and testing client pilot, early adopter teams saw productivity improvements of up to 50%, the company said.

Price Action: IBM shares are trading higher by 7.67% to $187.27 premarket on the last check Thursday.

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