IBM Stock Soars 35% in 2025, Driven by AI Business Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- AI Business Growth: IBM has secured $9.5 billion in AI-related business so far, with about 80% coming from consulting signings, indicating strong momentum in the enterprise AI market, which is projected to grow to $49.1 billion by 2032, further solidifying IBM's market position.
- Quantum Computing Outlook: IBM expects to demonstrate quantum advantage by the end of 2023 and plans to deliver its first fault-tolerant quantum computer by 2029; while commercialization remains a challenge, the quantum computing market is estimated to reach $97 billion by 2035, placing IBM at the center of this long-term opportunity.
- Reliable Dividend Returns: IBM pays a quarterly dividend of $1.68 per share, yielding approximately 2.2%, and has never missed a payment since 1916, showcasing its reliability in uncertain markets and attracting investors seeking stable returns.
- Free Cash Flow Forecast: IBM raised its 2025 free cash flow forecast to $14 billion, and despite the stock trading near all-time highs, its reasonable valuation and growth potential make it an attractive investment opportunity.
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: 297.950
Low
210.00
Averages
295.18
High
350.00
Current: 297.950
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.
