Reasons To Buy Ibm Stock

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Reasons To Buy Ibm Stock

Two Reasons To Buy IBM Stock

IBM stock was a success story in 2025, and now analysts think it is about to do the same in 2026. The IBM stock price increased 35% in 2025 and surpassed the S&P 500 returns.

The last decade was not so good for IBM, as it was stuck in a period of inconsistent and slow growth. The key reason for this was IBM's being late to the cloud computing.

Enterprise AI And Cloud Computing

But in the last few years, IBM has become a key player in hybrid cloud computing. They also have an enterprise AI, which has kick-started the growth and has set the company up for success in the long term.

It is very difficult to predict where the AI is heading next as the tech is evolving at a very fast pace. Also, an unprecedented amount of money is being spent on the AI data centers. Even, the OpenAI is spending really fast even though it is already a top player in the AI space.

One reason why you should buy IBM stock is that it is spending big on AI data centers. So, this means the company can deliver value to enterprise customers and also get its own share from AI.

Another thing that is going well for IBM is its consulting business. They offer AI solutions for customers that can help them get predictable returns on investment.

So far, IBM has managed to secure $9.5 billion from just the AI-related business, and around 80% of that was from consulting.

Another reason for buying IBM stock is quantum computing, which is regarded as the computer of the future. If the quantum computers make it to the mainstream, they would prove to be a huge commercial success.

It will take several years for IBM to build a quantum computer that is commercially viable. But if they succeed, they would easily tap into the quantum computing market that will be worth $97 billion by year 2035.

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