IBM Shares Surge 34.7% in 2025 Driven by AI Business Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Fool
- Outstanding Stock Performance: In 2025, IBM's stock surged 34.7%, significantly outperforming the S&P 500, reflecting the company's strong performance in AI and quantum computing, which bolstered investor confidence.
- AI Business Growth: By the end of Q3 2025, IBM's AI business book nearly doubled from $5 billion in 2024 to $9.5 billion, indicating robust demand for AI solutions among enterprise clients and prompting an upward revision in the company's full-year revenue outlook.
- Quantum Computing Prospects: IBM's 2025 quantum computing roadmap anticipates the launch of large-scale fault-tolerant quantum computers by 2033 and beyond, potentially revolutionizing fields like materials science and drug discovery, thereby enhancing the company's leadership in high-tech sectors.
- Cash Flow Outlook: IBM expects to generate $14 billion in free cash flow in 2025, and despite economic uncertainties, the strong growth in its AI business is set to support future cash flow increases, enhancing the company's long-term investment appeal.
Analyst Views on IBM
Wall Street analysts forecast IBM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for IBM is 295.18 USD with a low forecast of 210.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
7 Buy
5 Hold
1 Sell
Moderate Buy
Current: 296.730
Low
210.00
Averages
295.18
High
350.00
Current: 296.730
Low
210.00
Averages
295.18
High
350.00
About IBM
International Business Machines Corporation is a provider of global hybrid cloud and artificial intelligence (AI) and consulting expertise. The Company’s segments include Software, Consulting, Infrastructure and Financing. The Software segment includes hybrid cloud and AI platforms, which allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment focuses on integrating skills on strategy, experience, technology and operations by domain and industry. The Infrastructure segment is focused on the hybrid cloud infrastructure market, providing on-premises and cloud-based server and storage solutions. In addition, it offers a portfolio of life-cycle services for hybrid cloud infrastructure deployment. The Financing segment provides client and commercial financing, facilitating its clients’ acquisition of hardware, software and services. It helps clients in more than 175 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
