Datavault AI (NASDAQ: DVLT) stock surged 24% on Monday after it announced that International Business Machines Corp (NYSE: IBM (NYSE: IBM) committed multi-million-dollar resources to support its growth.
IBM will provide engineering, technical sales, and quantum computing expertise to strengthen Datavault AI's platform development and go-to-market strategy. The partnership aims to accelerate Datavault AI's product roadmap and integrate IBM's watsonx.ai and watson.governance technologies as well as expand adoption across enterprise and institutional markets.
Biz Dziarmaga, IBM's Head of Americas AI Partnerships, emphasized that enterprises increasingly seek new revenue streams, and the joint AI platform offers a compelling solution to meet that demand.
McKinsey & Company estimates that generative AI could add $2.6 trillion to $4.4 trillion annually to global business applications.
Datavault AI stock has tanked 47% year-to-date after failing to meet its EPS analyst consensus estimates in at least the last three quarters and its revenue consensus estimate in at least one quarter.
IBM is up over 29% topping the EPS and revenue estimates in the last three quarters, backed by its strategic pivot to hybrid cloud and AI, with additional tailwinds from the Kyndryl spin-off and Red Hat acquisition.
Price Action: DVLT shares were trading 19.27% higher to $1.30 premarket at the last check on Monday. IBM is up 0.53%.
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