International Business Machines (NYSE:IBM) Expands Semiconductor Research With Tokyo Electron Partnership

International Business Machines (NYSE:IBM) recently announced the extension of its strategic partnership with Tokyo Electron (TEL), focusing on developing technologies essential for generative AI. This could have enhanced market confidence, driving a 14% increase in its stock price over the last quarter. During this period, IBM declared a stable $1.67 quarterly dividend and introduced AI-driven projects like the Granite 3.2 LLM, which align with market trends favoring AI innovations. Despite broader market volatility due to imminent tariff announcements and a 3% decline over the past week, IBM's alliances and innovations may have supported its upward price momentum.

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In the last five years, IBM's total shareholder return reached 186.66%, showcasing significant gains when considering both stock price appreciation and dividends. Compared to the industry, IBM outperformed the US IT sector over the past year, which returned 7.9%.

This growth was underpinned by several key developments. Notably, IBM's acquisition strategy, including Neural Magic, and pending deals like HashiCorp, bolstered its AI and cloud capabilities. The launch of the z17 mainframe positioned IBM to meet infrastructure demands. Partnerships, such as with NVIDIA and the Basque Government for AI and quantum computing, further enriched IBM's tech portfolio. Despite facing headwinds like currency fluctuations and geopolitical tensions, IBM maintained its momentum through consistent dividend policies, such as increasing its quarterly cash dividend to $1.67 in 2024, reinforcing shareholder confidence.

Explore historical data to track International Business Machines' performance over time in our past results report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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