One of the biggest opportunities in the artificial intelligence (AI) sector right now could surprise you…

It comes from IBM (IBM), the well-known provider of software, consulting, infrastructure and financing.

Yes, the bluest of the blue chip technology stocks…

Which many consider an old war horse…

Could now be the best under-the-radar value play in the entire AI sector.

Why, you ask?

IBM’s “watsonx” platform.

Watsonx, which launched earlier this year without much fanfare or notoriety, allows you to both customize your AI package and deploy it across your business.

Here’s how it works…

• First, it allows you to train, validate and deploy machine learning models.
• Second, it scales analytics and AI workloads for all your data.
• Third, it monitors and governs your organization’s AI activities.

Of course, that’s a super-simplified version of the AI process…

And every business application is unique and different…

But when it comes to the buying opportunity on IBM right now, here’s what Barron’s writer Eric Savitz recently said:

“IBM shares are dirt cheap, at about 14 times estimated 2024 earnings and about two times projected sales – and they have one of the highest dividend yields in the tech sector, at 4.7%. The stock this year is about flat, sharply underperforming the broader market. It doesn’t require artificial intelligence to see the appeal here – just old fashioned investor smarts.”

It’s hard to argue with that logic.

YOUR ACTION PLAN

If IBM (IBM) continues to gain recognition as a leading AI stock (despite the stock going mostly unnoticed on Wall Street), there’s a tremendous opportunity to buy shares on the cheap at current levels.

If you want to see how Karim and I get in and out of stocks like IBM, I invite you to join us in The War Room. All seven of my trades last week were winners, including a 19.51% return on Schlumberger (SLB) in less than one trading day. Right now I’m guaranteeing you’ll receive 252 winning trades like that one in your first 12 months of membership.

Go here to join The War Room.

MONDAY MARKET MINUTE

• Dollar Tree Could Benefit From Dollar General. Last Friday, shares of Dollar General (DG) popped 9% – making it the best-performing stock in the S&P 500 – after the struggling discount retailer announced it is bringing back former CEO Todd Vasos to help it regain its financial footing. Shares of DG hit a nearly five-year low last Thursday, and despite Friday’s gains, they’ve lost more than half their value this year. If Vasos’ return sets the table for a turnaround, then it should also impact Dollar Tree (DLTR).
• Thanks, Banks. There was a bullish tone in the market this morning. Charles Schwab (SCHW) beat estimates, and if the shares can stay positive, this could indicate a short-term bottom.
• Geopolitical Conflicts and Energy Stocks. If the ongoing geopolitical conflicts impact the energy markets, then a play like CME Group (CME) could be worth considering. CME operates futures and options trading markets worldwide, offering products based on interest rates, equity indexes, foreign exchange, agricultural commodities, energy and metals. Any uptick in volatility could spike trading volumes, which would benefit CME.
• A Safe Haven in COST. It might shock you to learn that Costco, one of the names I’ve identified as a “safe haven” in recent trading, sells more hot dogs than every MLB stadium – combined. From a trading perspective, it remains a name to buy on any dips.