International Business Machines Corp (NYSE:IBM) has earned a price target increase from Wedbush analysts, who also maintained their ‘Outperform’ rating on their bullish view of the tech giant’s role in the ongoing AI revolution.
“We believe that IBM is well-positioned to capitalize on the current demand shift for hybrid and AI applications with more enterprises looking to implement AI for productivity gains and drive long-term profitable growth,” they wrote.
They highlighted IBM as one of the “top software names to own” and a key beneficiary of surging enterprise demand for AI and hybrid cloud solutions.
“We are raising our price target for IBM from $300 to $325 as our recent checks give us incremental confidence in owning software cloud/AI exposed names,” the analysts wrote. “IBM remains one of our top software names to own as the AI Revolution accelerates over the coming years.”
Despite the stock’s strong performance in 2025, Wedbush sees more room to run, suggesting it remains “under owned.”
Shares of IBM traded at about $282 on Friday, having surged 28% so far in 2025.
A central component of Wedbush’s thesis is IBM’s $6 billion-plus generative AI (GenAI) book of business, which the firm sees as offering a “significant runway into generating improved growth over time.”
The analysts point to IBM’s momentum in commercializing GenAI tools and services, citing the company's ongoing success in integrating AI into more than 70 enterprise workflows across areas such as sales, finance, and marketing.
“IBM has developed into a significant player within the AI space,” the note states, also emphasizing the synergies emerging from recent integrations with Red Hat and HashiCorp products.
Looking further ahead, IBM’s ambitions in quantum computing are also part of Wedbush’s bullish outlook.
The analysts highlighted IBM’s recent roadmap announcement around its Quantum Starling project, which targets a fault-tolerant quantum computer featuring 100 million gates and 200 logical qubits. IBM also plans to release its new Quantum Nighthawk chip later this year, which promises “improvements to quality and connectivity for true quantum use cases.”
“While still in the early stages of playing out, IBM is taking this multi-billion-dollar quantum computing industry head-on by providing improved software and hardware capabilities to create increased use cases for various sectors,” Wedbush wrote.