IBM's Acquisition of Confluent: IBM acquired Confluent for $11 billion in cash, a 34% premium, to enhance its capabilities in real-time data streaming for AI applications, which has generated significant retail trader interest and support on platforms like Reddit.
IBM's Financial Performance: IBM's AI business reached $9.5 billion in Q3, with a 17% year-over-year increase in infrastructure revenue, reflecting a strong market position and a strategic approach to AI investments.
ASML's Market Position: ASML reported $7.52 billion in Q3 revenue with a 29.4% profit margin, benefiting from its monopoly in extreme ultraviolet lithography technology, crucial for AI chip manufacturing, which has also attracted retail trader enthusiasm.
Shifts in Retail Sentiment: Both IBM and ASML are seen as solid investments in the AI sector, with retail traders favoring profitable companies over speculative growth, indicating a shift in market sentiment towards value-focused investments.
Wall Street analysts forecast IBM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IBM is 315.80 USD with a low forecast of 210.00 USD and a high forecast of 375.00 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.
16 Analyst Rating
Wall Street analysts forecast IBM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IBM is 315.80 USD with a low forecast of 210.00 USD and a high forecast of 375.00 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.
11 Buy
4 Hold
1 Sell
Moderate Buy
Current: 294.670
Low
210.00
Averages
315.80
High
375.00
Current: 294.670
Low
210.00
Averages
315.80
High
375.00
JPMorgan
Neutral
maintain
$290 -> $312
2026-01-21
New
Reason
JPMorgan
Price Target
$290 -> $312
AI Analysis
2026-01-21
New
maintain
Neutral
Reason
JPMorgan raised the firm's price target on IBM to $312 from $290 and keeps a Neutral rating on the shares. The firm expects IBM to report "solid" Q4 results led by acceleration in software, with strength in automation and Red Hat as transaction processing growth recovers. However, the shares are pricing in solid results at these levels, the analyst tells investors in a research note.
Evercore ISI
Outperform
maintain
$315 -> $330
2026-01-20
New
Reason
Evercore ISI
Price Target
$315 -> $330
2026-01-20
New
maintain
Outperform
Reason
Evercore ISI raised the firm's price target on IBM to $330 from $315 and keeps an Outperform rating on the shares, which were also added to the firm's "Tactical Outperform list" ahead of IBM reporting December-end quarterly results on Wednesday, January 28. The firm expects the company to deliver in-line to slight upside compared to consensus revenue and EPS estimates, with performance driven by Infrastructure strength and improvement in Consulting, the analyst tells investors. For 2026, the firm expects IBM to initially guide to growth that is at the lower end of their mid-single-digit target range and about $15B in free cash flow, the analyst added.
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RBC Capital
Outperform
maintain
$300 -> $350
2026-01-05
Reason
RBC Capital
Price Target
$300 -> $350
2026-01-05
maintain
Outperform
Reason
RBC Capital raised the firm's price target on IBM to $350 from $300 and keeps an Outperform rating on the shares. 2026 is likely to be a year when AI tailwinds become more evident for companies well positioned for enterprise AI adoption, while less prepared peers may remain pressured by the "AI is the death of software" narrative, the analyst tells investors in a research note. Enterprise spending appears to be stabilizing and improving in select areas, with GenAI driving innovation even as management teams remain conservative in early 2026 guidance, the firm says.
Erste Group
Hold -> Buy
upgrade
2025-12-05
Reason
Erste Group
Price Target
2025-12-05
upgrade
Hold -> Buy
Reason
Erste Group upgraded IBM to Buy from Hold following the "good" Q3 report. The firm sees the company's sales increasing more than expected in 2026. The shares should rally on IBM's positive outlook and price gains, the analyst tells investors in a research note.
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.
