Tech giant IBM (IBM) recently released Granite 4.0 Nano, which is an AI model designed to run directly on everyday devices, such as laptops or on-site machines, instead of needing large, remote data centers. Importantly, this smaller AI model can handle tasks such as summarizing documents, helping with workflow automation, and analyzing data without needing a constant internet connection. As a result, IBM says that this could make AI tools more useful in offline situations.
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What makes Granite Nano different is that it’s not focused on being the biggest or most complex model. Instead, it’s designed to use fewer resources, thereby making it more efficient and easier to use on smaller devices. IBM believes that this approach is especially helpful for industries like healthcare and manufacturing, where privacy, security, and speed are very important.
More specifically, since the AI runs locally, companies don’t have to send sensitive data to the cloud, which helps with privacy and compliance. It also means that AI can be used in more places, such as hospitals to analyze medical records or in factories to monitor equipment in real-time. In addition, IBM pointed out that using AI this way could reduce energy use and, therefore, make it a more eco-friendly option.
Is IBM a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on seven Buys, six Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $294.75 per share implies 3.3% downside risk.
