IBM jumps 13%, notch the best day since 2000 on a strong earnings

IBM Roast 13% Thursday on the back of a strong pressure in the fourth quarter showing that artificial intelligence growth increased its software business.

The move pushed the stock to its best day since July 20, 2000, when shares burst just over 13%.

The company reported an adjusted earnings of $ 3.92 per year. Share of $ 17.55 billion in revenue after Wednesday. Analysts examined by LSEG had expected the earnings to enter $ 3.75 per year. Share and revenue to reach $ 17.54 billion.

IBM generally reported an increase of 1% in revenue, while its software unit grew 10% on a year-over-year basis in the midst of the growing demand for AI and its operating system known as Red Hat Linux. CEO Arvind Krishna also said the company released $ 5 billion in bookings for its generative AI segment.

“We closed the year with double -digit revenue growth in the quarter software, led by further acceleration in Red Hat,” he said in a statement. “Customers globally continue to turn to IBM to transform with AI.”

JPMorgan -Analyst Brian Essex maintained his neutral rating at IBM, but said the company remains “encouraged” by its software strength and growth track. Goldman Sachs analyst James Schneider repeated his purchase rating and said software strength should benefit IBM’s turnaround plan.

Shares of IBM have achieved 16% since the beginning of the year.