tech
IBM surges 30% as Barclays calls its software the SaaSpocalypse antidote
IBM stock surged 10% after Barclays initiated coverage with an overweight rating and $350 target, arguing that IBM’s infrastructure software is the “good part” of enterprise software immune to AI disruption. The gains extend a 30% May rally driven by a $10 billion quantum computing commitment and Trump administration funding.
TL;DR
- IBM stock jumped 10% following Barclays initiating coverage with an overweight rating and a $350 price target.
- The company's stock has gained nearly 30% in May, its best monthly performance in almost 24 years.
- Barclays' core thesis focuses on IBM's infrastructure software, which serves large, regulated enterprises and is seen as resistant to AI disruption.
- IBM is investing $10 billion in quantum computing over the next five years, including building the Anderon quantum chip foundry.
- A video of former President Trump praising IBM CEO Arvind Krishna has also contributed to the stock's rally.
- IBM's recent gains reflect a broader trend of legacy computing companies finding new relevance in the AI era.