IBM Nears Record Highs Fueled by AI, Cloud, and Quantum Growth
IBM shares surged 40% in 2025, driven by breakthroughs in AI mainframes, hybrid cloud adoption, and quantum computing advancements. The stock now trades at $307.94—just 5% below its 52-week peak—with institutional investors like Dodge & Cox increasing positions despite elevated valuations (36x trailing P/E).
Third-quarter earnings exceeded expectations, showcasing robust free cash FLOW and a 2.2% dividend yield. Market sentiment remains bullish, with a $291 average price target reflecting confidence in IBM's enterprise technology moat.