IBM
Not the flashiest AI name in the room
IBM doesn’t usually get the “cool kid at the AI table” treatment. But Wedbush’s Dan Ives thinks that might be exactly why the stock is interesting. He’s sticking with an Outperform rating and a $340 price target, which implies roughly 35% upside from here.
The bet: AI goes from theater to factory
Ives’ pitch is basically this: AI is leaving the demo stage and moving into production, where enterprises actually spend money. And that’s IBM’s happy place. If you’re selling tools for workflows, automation, and mission-critical systems, you don’t need to win the popularity contest — you just need to get embedded.
Why IBM might fit the moment
IBM’s edge, in this framing, is its full-stack setup:
- software
- consulting
- infrastructure
That combo gives it a shot at capturing value across the whole AI lifecycle, not just one shiny slice of it. Products like WatsonX, plus Red Hat and security offerings, are apparently starting to see some pull-through as companies look for AI that’s scalable, compliant, and less likely to cause a boardroom panic.
The real-world wrinkle
IBM is also gaining traction in more regulated corners of the market. FedRAMP authorizations and deployments on AWS GovCloud point to a growing federal and secure-AI footprint, while newer security tools could ride the wave of companies trying to bolt AI onto cybersecurity without turning the place into a digital dumpster fire.
Big picture: this isn’t a bet on the best model. It’s a bet on who gets paid when AI actually gets used — and Wedbush thinks IBM has a seat near the cash register.