NEW YORK (TheStreet) -- International Business Machines Corp. (IBM) has developed a new chip that the information technology company says possesses features of the brain, including functions that recognize patterns and identifies objects while using less electrical power than conventional hardware, the Wall Street Journal reports.
Called TruNorth, the company has received $53 million in funding since 2008 to develop the chip from the Pentagon's Defense Advanced Research Projects Agency.
TrueNorth uses 5.4 billion transistors, four times more than a typical PC processor. IBM says it's a break from the standard designed used in most computers, the Journal said.
Utilized for IBM by Samsung Electronics (SSNLF), the company is talking to potential partners about ways to bring the chip to the market.
Shares of IBM closed down -0.90% to $184.30.
TheStreet Ratings team rates INTL BUSINESS MACHINES CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTL BUSINESS MACHINES CORP (IBM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."