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NEW YORK - IBM (NYSE:IBM), a dominant force in IT services with a market capitalization of $266 billion and trading near its 52-week high of $296.16, on Tuesday unveiled its next generation of Power servers, designed to operate with no planned downtime for system maintenance and featuring enhanced ransomware protection capabilities. According to InvestingPro data, IBM has delivered an impressive 70% return over the past year, reflecting strong market confidence in its enterprise solutions.
The Power11 servers, which will be generally available starting July 25, 2025, have been redesigned with innovations across the processor, hardware architecture, and virtualization software stack, according to the company’s press release statement. With annual revenue of $62.8 billion and EBITDA of $14 billion, IBM continues to demonstrate its capability to invest in cutting-edge technology development.
IBM claims the Power11 is designed to be the most resilient server in the history of the IBM Power platform, with 99.9999% uptime and less than one-minute guaranteed ransomware threat detection through its Power Cyber Vault feature. For deeper insights into IBM’s technological advantages and market position, InvestingPro subscribers can access exclusive analysis and 14 additional ProTips about the company’s performance and outlook.
The new server line will be the first to support the IBM Spyre Accelerator, the company’s system-on-a-chip designed for AI workloads, which is expected to be available in the fourth quarter of 2025.
Performance improvements include up to 55% better core performance compared to Power9 and up to 45% more capacity with higher core counts in entry and mid-range systems compared to Power10, IBM stated.
For the first time, IBM will simultaneously release high-end, mid-range, and entry servers alongside IBM Power Virtual Server in IBM Cloud, providing options for on-premises or cloud deployment.
IBM also highlighted energy efficiency claims, stating that Power11 offers twice the performance per watt versus comparable x86 servers and up to 28% better server efficiency with its new Energy Efficient Mode compared to Maximum Performance Mode.
The company will make watsonx.data, its hybrid data lakehouse, available on Power11 by the end of 2025 to support AI workloads and application modernization.
IBM Power11 is targeted at organizations that run mission-critical workloads, particularly in banking, healthcare, retail, and government sectors. While IBM’s stock currently trades above its Fair Value according to InvestingPro analysis, the company’s strong gross profit margin of 57% and consistent dividend payments for 55 consecutive years underscore its enduring market leadership.
In other recent news, IBM announced plans to build a practical quantum computer by 2029, with further ambitions to develop a larger system by 2033. The company aims to construct the "Starling" quantum computer in Poughkeepsie, New York, which will feature approximately 200 logical qubits. This development is part of IBM’s broader strategy to leverage quantum mechanics for solving complex problems beyond the capacity of classical computers. Meanwhile, BofA Securities raised its price target for IBM to $320, citing the company’s strong growth potential in emerging technologies such as generative AI and quantum computing. BofA emphasized IBM’s strategic positioning and its capacity for future mergers and acquisitions, supported by robust free cash flow. In another development, Deutsche Telekom has selected IBM Concert for AI-powered patch management to enhance its IT system security and operational efficiency. Additionally, IBM has partnered with Parsons Corporation to modernize the U.S. air traffic control system, aiming to integrate the latest technologies for improved safety and resilience. Lastly, Evercore ISI maintained its outperform rating on IBM, reflecting confidence in the company’s strategic initiatives amid sector data.
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