Shares of technology giant International Business Machines (NYSE: IBM) have bounced back from their pandemic-era lows, but the stock remains down about 21% from its all-time high reached more than a decade ago. The company has long been transforming itself for the age of cloud computing. Progress has been slow.

IBM now appears to be hitting its stride. The company has shed around 15 businesses in recent years, including the spinoff of its managed infrastructure services unit into Kyndryl. While the company has made plenty of acquisitions as well, notably the $34 billion purchase of Red Hat in 2019, these actions have shifted IBM's focus to its best growth opportunities and away from slow-growing legacy businesses.

The two biggest growth opportunities for IBM are hybrid cloud computing and artificial intelligence. The company is going after both through its software and consulting businesses.

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Source Fool.com