Holding shares of IBM (NYSE:IBM) isn’t the most obvious way to invest in artificial intelligence (AI). However, you can actually get exposure to machine learning through IBM stock, along with consistent dividend payouts. Plus, IBM’s annual revenue growth should put some of the skeptics’ doubts to rest.

IBM gets a “B” rating instead of an “A” because let’s be honest, other technology companies have overtaken IBM during the past 20 years. However, IBM is staying relevant by venturing into notable tech niches, including AI.

So, don’t assume that IBM is a dinosaur in the 2020s. Holding a few IBM shares means you’ll get quarterly cash payments, and you’ll be invested in an established company that’s still not afraid to innovate.

IBM Stock Declines Despite Solid Results

On Jan. 25, IBM stock fell in post-session trading after the company reported its largest annual sales increase in over a decade. This seems like an irrational response from the market, as IBM had a solid 2022 despite high inflation.

IBM’s full-year 2022 revenue of $60.5 billion represents a year-over-year increase of 6%. That’s the biggest annualized sales increase, percentage-wise, for IBM since 2011.

Furthermore, IBM reported 2022 hybrid cloud revenue of $22.4 billion, up 11%. This just goes to show that IBM has, in some respects at least, demonstrated success in its transformation.

Perhaps investors sold their IBM shares because the company announced that it was laying off 1% to 1.5% of its employees.

Yet, IBM certainly isn’t the only tech company implementing layoffs. In any case, the headcount reduction should help IBM reduce its expenditures.

You Can Get AI Exposure with IBM Stock

Maybe you’re amazed to discover that IBM is growing its hybrid cloud business revenue. Now, here’s another fact that might surprise you.

IBM is involved in machine learning, and the company is collaborating with the National Aeronautics and Space Administration on an AI-focused project.

Specifically, IBM will collaborate with NASA’s Marshall Space Flight Center to use IBM’s AI technology “to discover new insights in NASA’s massive trove of Earth and geospatial science data.”

Moreover, “AI foundation model technology” will be applied to “NASA’s Earth-observing satellite data for the first time.”

Suffice it to say, it’s a huge vote of confidence as NASA taps IBM to lend a hand with its AI technology.

This isn’t only about IBM finding new sources of revenue. It’s also about IBM shaking off its reputation as a tech left behind. Now, IBM has an opportunity to re-establish itself as a front-runner in future-facing niche markets, including AI.

What You Can Do Now

If you’d like to invest in a famous tech business that’s making waves in machine learning, consider IBM. The company respects its loyal investors, as IBM pays a generous annual dividend yield of around 5%.

Thus, you can get regular cash payouts and hold a stake in a revenue-growing business with shares of IBM stock. And, you’d be invested in the AI revolution with a stock pick that many financial traders are currently missing out on.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.