Shares of International Business Machines Corp. (NYSE: IBM) climbed nearly 8% in Monday’s premarket session, fueled by a new analyst rating and growing enthusiasm around quantum computing.
Barclays initiated coverage on IBM with an “Overweight” rating and a price target of $350, representing an upside potential of approximately 17.5% from its previous close.
The bank’s bullish stance reflects that nearly half of IBM’s revenue and most of its profit are derived from software, a segment mix expected to expand further as software outpaces other business lines.
Analyst Raimo Lenschow noted that IBM’s infrastructure software serves large, highly regulated enterprises, creating a sticky customer base unlikely to face significant disruption from AI.
Lenschow expects IBM to deliver mid-single-digit organic revenue growth alongside continued margin expansion, supporting steady earnings growth while offering additional upside from quantum computing initiatives.
Barclays also highlighted that IBM’s combination of consistent growth and a reasonable valuation relative to its prospects underpins its overall bullish position on the stock.
IBM, headquartered in Armonk, New York, announced last week that it would invest more than $10 billion in quantum computing over the next five years, targeting the launch of a large-scale commercial quantum system by 2029.
The announcement followed the U.S. government’s decision to provide $1 billion in funding to IBM to accelerate quantum computing development, after which IBM pledged an additional $1 billion to establish a new spinout called Anderon.
Anderon will oversee the construction and operation of a quantum wafer fabrication facility, positioning IBM at the center of what could become a critical national technology infrastructure push.
Retail investors on Stocktwits responded with intense optimism, pushing sentiment into “extremely bullish” territory alongside “extremely high” message volumes at the time of reporting.
One user declared, “400$ today mark my words,” while another bullish commenter echoed the same $400 price prediction independently.
A third retail investor went further, writing, “buy more shares before this explodes to 500$,” capturing the speculative energy surrounding IBM’s recent momentum.
The bullish sentiment follows a remarkable May for the stock, during which IBM surged nearly 30%, marking its best monthly performance in nearly 24 years.
With Wall Street analyst coverage now reinforcing what retail investors have been anticipating, IBM enters June with both institutional credibility and grassroots enthusiasm behind its quantum computing story.
