For years, IBM has been developing ways to adapt its AI supercomputer Watson to revolutionize health care, finance, law and academia. Unfortunately, genomics and oncology programs powered by Watson didn't live up to expectations. Still, Watson recently performed as well as or even better than AI services from Amazon, Microsoft and Google in tests by the Allen Institute for Artificial Intelligence. Analyst Wamsi Mohan says IBM's cloud services and AI initiatives will expand the company's market share of total information technology spending in the long term. Bank of America has a "buy" rating and a $162 price target for IBM stock, which closed at $135.34 on Jan. 6.