Wedbush kept an Outperform on IBM (IBM, Financial) and lifted its price target to $325 from $300, betting on a new AI-fueled growth phase.
Analysts led by Daniel Ives cited fresh field checks showing robust demand for IBM's software cloud and AI offerings. IBM features prominently on Wedbush's “AI 30” list, reflecting conviction that it's underowned despite strong YTD performance.
The firm points to IBM's $6 billion+ GenAI book as a runway for sustained top-line expansion, with ongoing product launches aimed at capturing emerging use cases. A key catalyst is the continued shift toward hybrid cloud and containerized AI—Wedbush expects 75% of AI workloads to run in containers by 2027.
On the ground, Ives' team sees momentum across WatsonX, AI agents, Red Hat, and OpenShift as enterprises lean on IBM to architect AI strategies. Looking further ahead, IBM's quantum roadmap—including the upcoming Quantum Nighthawk chip and its Quantum Starling platform—positions it to tackle the multibillion-dollar quantum computing market.
IBM's blend of legacy hybrid-cloud strength, accelerating GenAI adoption, and early quantum forays differentiates it from peers. As more enterprises seek productivity gains from AI, IBM's broad portfolio could unlock higher-margin software growth and defend its leadership in enterprise IT.
Investors should monitor GenAI revenue cadence, container penetration rates, and early quantum milestones to validate whether IBM's renaissance accelerates toward that $325 target.
