In the last few weeks, the price of IBM has exploded as the company has performed a successful evolution out of its older hardware to become a more contemporary software and consulting enterprise dealing in artificial intelligence, hybrid cloud, and enterprise automation.
IBM was able to withstand a small decline in stock price after its first-quarter report posted this April, though it still beat expectations with a 1% growth in revenue to $14.5 billion year-over-year. Revenue was down 10%, and adjusted earnings per share were 5% lower, but the company looked ahead to 5% full-year revenue growth indicating that it continued to develop in its transformation.
IBM’s momentum made by AI has attracted positive analyst reactions. Wedbush increased its price target to $325, saying that IBM is one of their best software stocks to own and highlighting its early-stage revival with the help of AI. Wedbush observes that IBM has a $6 billion generative AI business and a robust hybrid cloud capability as potential strong-growth discoveries and notes that by 2027, 75% of AI workloads should operate on platforms like those enabled by IBM.
Moving into the future, IBM is in good shape to continue growth with its combination of AI innovative power and hybrid cloud capabilities alongside quantum computing aspirations. The ease of adoption of AI in enterprise workflows and prioritization of high-growth software indicate that IBM is at the beginning of a new cycle of growth.
Hence, the stock price recovery in the case of IBM is a consequence of the switch of the company to AI and cloud technology with gains in confidence from analysts who believe that growth will persist as a result of the recent strategic shifts. This places IBM as a practical investment option in the changing world of AI.
Analysts revamp IBM stock price target after AI-fueled new high originally appeared on TheStreet. For investors looking beyond popular AI software names like Palantir, International Business Machines Corp. (IBM) is quietly becoming a stock to watch. On June 18, IBM stock closed at a record $283.21. Year-to-date, the stock is up more than 27%.