Oppenheimer: Wall Street Fails to Recognize IBM's Transition Value
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 21 2025
0mins
Should l Buy IBM?
Source: CNBC
Investment Outlook: Oppenheimer has initiated coverage of IBM with an outperform rating and a price target of $360, suggesting a 24% upside due to anticipated growth in its software portfolio.
Software Growth: Analyst Param Singh forecasts a 10% compound annual growth rate for IBM's software segment over the next two years, driven by strengths in automation and Red Hat.
Consulting Revenue Recovery: IBM's consulting revenue showed positive growth in Q3 2025, with expectations for low single-digit growth moving forward, as organizations leverage AI infrastructure.
Margin Expansion: Singh believes that IBM's transition to a software-centric model will lead to higher gross and pre-tax margins, justifying a re-rating of the stock to align with industry averages.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy IBM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on IBM
Wall Street analysts forecast IBM stock price to rise
16 Analyst Rating
11 Buy
4 Hold
1 Sell
Moderate Buy
Current: 250.370
Low
210.00
Averages
315.80
High
375.00
Current: 250.370
Low
210.00
Averages
315.80
High
375.00
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.
SEI Investments Partners with IBM to Drive Enterprise Transformation
- Transformational Partnership: On March 9, SEI Investments announced a collaboration with IBM to accelerate enterprise transformation through the integration of agentic AI and automation, aiming to identify opportunities for process redesign and modernization via a comprehensive data-driven review.
- Productivity Enhancement: The partnership focuses on deploying AI to automate routine tasks, allowing teams to shift their focus toward higher-value, relationship-driven activities, which is expected to significantly elevate service quality and strengthen client trust.
- Enhanced Decision-Making: IBM Consulting will work closely with SEI’s subject matter experts to embed agentic AI into daily operations using the IBM Enterprise Advantage platform, aiming to transform the operating model and enhance decision-making capabilities, further differentiating SEI Investments in the highly regulated financial services market.
- Innovation and Development: By making automation the engine of growth, SEI Investments aims to innovate faster and scale with greater confidence, creating new opportunities for professional development within the organization’s workforce.
See More
High Options Volume for New York Times and Thermo Fisher Scientific
- New York Times Options: New York Times (NYT) options volume reached 22,095 contracts today, representing approximately 2.2 million shares, which constitutes 98.3% of its average daily trading volume over the past month, indicating strong market interest in its future performance.
- High Volume Put Options: Within NYT, the $80 strike put option saw 10,001 contracts traded today, representing about 1.0 million shares, reflecting investor expectations of potential price declines, which could impact stock volatility.
- Thermo Fisher Options: Thermo Fisher Scientific Inc (TMO) options volume reached 19,487 contracts today, equating to approximately 1.9 million shares, accounting for 94% of its average daily trading volume over the past month, showcasing active market interest in its stock.
- Put Option Concerns: For TMO, the $570 strike put option traded 2,100 contracts today, representing around 210,000 shares, indicating investor concerns about potential future declines, which may affect its market performance.
See More
Nvidia's Strategic Shift: Launch of Open-Source AI Platform NemoClaw
- Strategic Shift: At its annual developer conference, Nvidia launched NemoClaw, an open-source, chip-agnostic platform for building and deploying AI agents, marking a transition from being solely a chipmaker to becoming the operating system for the future of AI, although this shift has yet to be fully recognized by investors.
- Market Competition: As companies like Google, Amazon, and Broadcom develop their own inference chips, Nvidia's traditional moat is weakening; the introduction of NemoClaw aims to maintain market competitiveness by offering free AI agent deployment solutions, thereby enhancing the company's long-term position in the AI sector.
- Open Source Strategy: Built on OpenClaw, NemoClaw allows users to download and run the software locally, with Nvidia promoting adoption by giving away this layer while monetizing the underlying chips and computing power, akin to the successful strategies employed by Microsoft and Google.
- Customer Relationship Challenges: Nvidia's strategy poses a potential threat to its key customers like OpenAI and Anthropic regarding pricing power; by providing free AI agents, Nvidia can maintain its dominance in the market and prevent customers from exerting pricing pressure, ensuring sustained GPU demand.
See More
NVIDIA Transitions to AI Operating System with NemoClaw Launch
- Strategic Shift: At the GTC conference, NVIDIA CEO Jensen Huang launched NemoClaw, an open-source, chip-agnostic platform for building and deploying AI agents, marking NVIDIA's transition from a chipmaker to an AI operating system, which is expected to enhance its market competitiveness.
- Market Lock-in: With the launch of NemoClaw, NVIDIA aims to prevent pricing pressure from clients like OpenAI and Anthropic by adopting a 'commoditize the complement' strategy, allowing enterprises to deploy AI agents for free, thereby maintaining control over GPU demand.
- Open Source Risks and Opportunities: The open-source nature of NemoClaw allows enterprises to run the software on local servers, which introduces security risks; however, NVIDIA mitigates these risks by adding security tools and data controls to ensure enterprise user trust.
- Historical Performance and Future Outlook: NVIDIA achieved a 73% revenue growth in the last quarter, with projected revenues nearing $80 billion for the first fiscal quarter, demonstrating its success in market transitions, and investors should monitor enterprise adoption of NemoClaw to assess whether NVIDIA can successfully transition from a chipmaker to an operating system.
See More
Investment Opportunities in Quantum Computing
- IonQ's Technological Edge: IonQ achieves 99.99% 2-qubit gate fidelity through its trapped-ion technology, positioning itself as a leader in quantum accuracy, which is expected to attract more commercial clients and enhance market share.
- D-Wave's Dual Approach: D-Wave Quantum is advancing in both quantum annealing and gate-based quantum systems, with its D-Wave Advantage2 system gaining traction among commercial customers, and future breakthroughs anticipated from its acquisition of Quantum Circuits.
- IBM's Stable Investment: IBM, a traditional computing giant, is actively advancing quantum computing with the development of two quantum chips, Nighthawk aiming for quantum advantage by year-end and Loon designed to reset failed qubits, potentially achieving fault-tolerant computing.
- Expanding Market Potential: As quantum computing technology matures, more companies are expected to enter the market, prompting investors to focus on these leading firms to capitalize on future growth opportunities.
See More
Fed Warns of Inflation Risks, Markets React Sharply
- Fed Policy Uncertainty: Fed Chair Jerome Powell highlighted rising inflation expectations during the latest meeting, leading to a 1.63% drop in the Dow Jones, marking its worst month since 2022, as the market adjusted its outlook on future rate hikes despite rates being held steady.
- Rocket Lab Record Contract: Rocket Lab secured a $190 million defense contract, the largest single launch contract in its history, with CEO Peter Beck emphasizing the company's advanced technology and production capabilities, resulting in a total order backlog exceeding $2 billion, positioning it as a key player in the new space era.
- Micron Earnings Miss: Micron reported record revenue and profit, yet its stock fell over 5% as it failed to meet high investor expectations, raising concerns about its ability to sustain memory demand amidst a competitive landscape.
- Alibaba's Performance Decline: Alibaba's adjusted EBITDA fell by 57%, partly due to increased investments in user experience and technology, although AI-related product revenue achieved triple-digit growth for the tenth consecutive quarter, indicating ongoing innovation efforts despite financial setbacks.
See More
SEI Investments Partners with IBM to Drive Enterprise Transformation
- Transformational Partnership: On March 9, SEI Investments announced a collaboration with IBM to accelerate enterprise transformation through the integration of agentic AI and automation, aiming to identify opportunities for process redesign and modernization via a comprehensive data-driven review.
- Productivity Enhancement: The partnership focuses on deploying AI to automate routine tasks, allowing teams to shift their focus toward higher-value, relationship-driven activities, which is expected to significantly elevate service quality and strengthen client trust.
- Enhanced Decision-Making: IBM Consulting will work closely with SEI’s subject matter experts to embed agentic AI into daily operations using the IBM Enterprise Advantage platform, aiming to transform the operating model and enhance decision-making capabilities, further differentiating SEI Investments in the highly regulated financial services market.
- Innovation and Development: By making automation the engine of growth, SEI Investments aims to innovate faster and scale with greater confidence, creating new opportunities for professional development within the organization’s workforce.
See More
High Options Volume for New York Times and Thermo Fisher Scientific
- New York Times Options: New York Times (NYT) options volume reached 22,095 contracts today, representing approximately 2.2 million shares, which constitutes 98.3% of its average daily trading volume over the past month, indicating strong market interest in its future performance.
- High Volume Put Options: Within NYT, the $80 strike put option saw 10,001 contracts traded today, representing about 1.0 million shares, reflecting investor expectations of potential price declines, which could impact stock volatility.
- Thermo Fisher Options: Thermo Fisher Scientific Inc (TMO) options volume reached 19,487 contracts today, equating to approximately 1.9 million shares, accounting for 94% of its average daily trading volume over the past month, showcasing active market interest in its stock.
- Put Option Concerns: For TMO, the $570 strike put option traded 2,100 contracts today, representing around 210,000 shares, indicating investor concerns about potential future declines, which may affect its market performance.
See More
Nvidia's Strategic Shift: Launch of Open-Source AI Platform NemoClaw
- Strategic Shift: At its annual developer conference, Nvidia launched NemoClaw, an open-source, chip-agnostic platform for building and deploying AI agents, marking a transition from being solely a chipmaker to becoming the operating system for the future of AI, although this shift has yet to be fully recognized by investors.
- Market Competition: As companies like Google, Amazon, and Broadcom develop their own inference chips, Nvidia's traditional moat is weakening; the introduction of NemoClaw aims to maintain market competitiveness by offering free AI agent deployment solutions, thereby enhancing the company's long-term position in the AI sector.
- Open Source Strategy: Built on OpenClaw, NemoClaw allows users to download and run the software locally, with Nvidia promoting adoption by giving away this layer while monetizing the underlying chips and computing power, akin to the successful strategies employed by Microsoft and Google.
- Customer Relationship Challenges: Nvidia's strategy poses a potential threat to its key customers like OpenAI and Anthropic regarding pricing power; by providing free AI agents, Nvidia can maintain its dominance in the market and prevent customers from exerting pricing pressure, ensuring sustained GPU demand.
See More
NVIDIA Transitions to AI Operating System with NemoClaw Launch
- Strategic Shift: At the GTC conference, NVIDIA CEO Jensen Huang launched NemoClaw, an open-source, chip-agnostic platform for building and deploying AI agents, marking NVIDIA's transition from a chipmaker to an AI operating system, which is expected to enhance its market competitiveness.
- Market Lock-in: With the launch of NemoClaw, NVIDIA aims to prevent pricing pressure from clients like OpenAI and Anthropic by adopting a 'commoditize the complement' strategy, allowing enterprises to deploy AI agents for free, thereby maintaining control over GPU demand.
- Open Source Risks and Opportunities: The open-source nature of NemoClaw allows enterprises to run the software on local servers, which introduces security risks; however, NVIDIA mitigates these risks by adding security tools and data controls to ensure enterprise user trust.
- Historical Performance and Future Outlook: NVIDIA achieved a 73% revenue growth in the last quarter, with projected revenues nearing $80 billion for the first fiscal quarter, demonstrating its success in market transitions, and investors should monitor enterprise adoption of NemoClaw to assess whether NVIDIA can successfully transition from a chipmaker to an operating system.
See More
Investment Opportunities in Quantum Computing
- IonQ's Technological Edge: IonQ achieves 99.99% 2-qubit gate fidelity through its trapped-ion technology, positioning itself as a leader in quantum accuracy, which is expected to attract more commercial clients and enhance market share.
- D-Wave's Dual Approach: D-Wave Quantum is advancing in both quantum annealing and gate-based quantum systems, with its D-Wave Advantage2 system gaining traction among commercial customers, and future breakthroughs anticipated from its acquisition of Quantum Circuits.
- IBM's Stable Investment: IBM, a traditional computing giant, is actively advancing quantum computing with the development of two quantum chips, Nighthawk aiming for quantum advantage by year-end and Loon designed to reset failed qubits, potentially achieving fault-tolerant computing.
- Expanding Market Potential: As quantum computing technology matures, more companies are expected to enter the market, prompting investors to focus on these leading firms to capitalize on future growth opportunities.
See More
Fed Warns of Inflation Risks, Markets React Sharply
- Fed Policy Uncertainty: Fed Chair Jerome Powell highlighted rising inflation expectations during the latest meeting, leading to a 1.63% drop in the Dow Jones, marking its worst month since 2022, as the market adjusted its outlook on future rate hikes despite rates being held steady.
- Rocket Lab Record Contract: Rocket Lab secured a $190 million defense contract, the largest single launch contract in its history, with CEO Peter Beck emphasizing the company's advanced technology and production capabilities, resulting in a total order backlog exceeding $2 billion, positioning it as a key player in the new space era.
- Micron Earnings Miss: Micron reported record revenue and profit, yet its stock fell over 5% as it failed to meet high investor expectations, raising concerns about its ability to sustain memory demand amidst a competitive landscape.
- Alibaba's Performance Decline: Alibaba's adjusted EBITDA fell by 57%, partly due to increased investments in user experience and technology, although AI-related product revenue achieved triple-digit growth for the tenth consecutive quarter, indicating ongoing innovation efforts despite financial setbacks.
See More
