The Financial Post reports in its Wednesday, Feb. 19, edition that some legacy tech stocks are gaining attention in 2025, despite many popular names stumbling. A Bloomberg dispatch to the Post reports that companies such as Cisco Systems, International Business Machines and Oracle are outperforming this year, as they signal that they, too, can be winners in the crucial growth area of artificial intelligence. These stocks are attracting investors due to their cheaper valuations and better dividend yields compared with established AI winners. Uncertainty around interest rates and import tariffs further enhances their appeal.
HSBC Holdings' Stephen Bersey says: "These more mature companies offer attributes that are defensive and very desirable. At the same time, there is more AI-related demand, which is helping to boost their growth." Rediscovering an old favourite such as Cisco has emerged as something of an investment theme on Wall Street. IBM, another stock that went years between records, has charged higher in recent months. Its own forecast last month projected strong revenue growth and a jump in AI-related bookings, and it followed that up with a bullish long-term sales outlook.
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