We recently published a list of 5 Companies Set To Address DeepSeek AI Concerns In Earnings Calls Today . In this article, we are going to take a look at where International Business Machines Corporation (NYSE:IBM) stands against other companies set to address DeepSeek AI concerns in earnings calls today.

The revelation about DeepSeek AI’s capabilities and costs rattled the US market a couple of days ago. Major semiconductor, power, and other AI-related stocks lost a big chunk of their value during trading, estimated at over a trillion dollars. Nvidia alone lost $600 billion in market cap, the most ever single-day drop in history.

Since that crash, a closer look at DeepSeek AI’s claims has calmed investor nerves. There are questions about the firm’s claims on training costs and even if true, analysts are slowly realizing they may not be as bad for many companies as originally thought. Because the US is involved in an AI race with China, it is unlikely the country is going to stop investing in its AI infrastructure just because it supposedly got beaten at it. In fact, that is all the more reason to start spending more.

Later today, a number of tech companies announced their earnings report. The probability of them being asked questions on DeepSeek AI is quite high. Investors want to listen to what these companies think and for that reason, these earning calls may be more relevant than ever in the market’s history.

To come up with the list of 5 companies that may address DeepSeek AI concerns in their earnings calls today, we only considered Mega Cap stocks that are expected to announce their earnings later today.

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International Business Machines Corporation (NYSE:IBM)

International Business Machines Corporation (NYSE:IBM) is a global integrated services and solutions provider that operates through financing, consulting, infrastructure, and software segments. When IBM reports its Q4 earnings later today, there will be multiple headwinds that analysts will have their eyes on. For example, the company is expected to report considerable forex pressure during the quarter and its guidance for growth in the Consulting segment may disappoint.

Software and AI business will more than cover for the headwinds though. IBM has been an underperformer for most of the last 10 years but things finally seem to be falling in place for the tech giant. The expected 14% YoY growth in operating income is a reflection of that improvement.

The stock is trading at 22 times forward earnings and about 14 times TTM free cash flow. At these valuations, the stock looks undervalued. Future developments in both AI and quantum computing are likely to improve the company’s valuations, though a lot of it will depend on what the company says about its 2025 plans at today’s earnings call.