Microsoft (MSFT, Financials) and IBM (IBM, Financials) both notched fresh highs Monday; shares of Microsoft rose nearly 2% to $486, while IBM added 3% to close at $289.18. The rally extends a strong year—IBM is up 33% so far; Microsoft has climbed 15%.
Wall Street isn't calling a top yet; Bernstein said Microsoft's partnership with OpenAI could unlock major upside for Azure; Wedbush called the tech giant the “AI front-runner.” The average price target sits at $531—about 9% above current levels.
IBM also has momentum; Wedbush lifted its target to $325, citing strength in hybrid cloud and enterprise AI demand. The company recently launched tools to help businesses manage AI agents; it also reaffirmed its ambition to build a fault-tolerant quantum computer by decade's end.
Both stocks are riding AI tailwinds; analysts believe the gains aren't done yet.
