Investors rallied behind International Business Machines’ artificial-intelligence strategy, driving the stock up after the company released its latest quarterly earnings Wednesday. The tech company said it has taken an open-innovation approach to artificial intelligence,

For the December quarter, the technology company reported earnings of $3.92 a share versus the consensus estimate of $3.78 a share.

In a statement, IBM CEO Arvind Krishna said the company has recorded $5 billion in bookings for its generative AI business.

Nvidia climbed 8.8%, with the rally gaining steam throughout the day and closing near session highs. The stock at one point shortly after the open was in the red. That bounce come

NVIDIA Corporation NVDA has once again proven its resilience, rebounding 8.9% on Tuesday after a brutal 17% plunge on Monday. The sell-off was triggered by concerns that Chinese AI startup DeepSeek’s latest artificial intelligence (AI) model could reduce demand for NVIDIA’s high-powered graphics processing units (GPUs).

When OpenAI released ChatGPT in 2022, companies started spending billions on GPUs to train AI models. Nvidia led the market for graphics processing units (GPUs), so it was the right company at the right time to deliver monster returns to investors.

Artificial intelligence (AI) is already transforming industries and has the potential to influence everything from automotive transportation to pharmaceutical discovery. Two companies making significant inroads into AI right now are the conversational AI platform company SoundHound AI (NASDAQ: SOUN) and semiconductor company Nvidia (NASDAQ: NVDA).