Wall Street Has a Mixed Opinion in International Business Machines (IBM), Here’s Why

International Business Machines Corporation (NYSE:IBM) is among the Best Performing Quantum Computing Stocks successful 2025. Wall Street has had a mixed sentiment connected the banal since the institution announced its acquisition of Confluent connected December 8.

International Business Machines Corporation (NYSE:IBM) noted acquiring Confluent to make astute information platforms for endeavor generative AI, successful a woody worthy astir $11 billion. Management noted that together, the integrated institution volition alteration enterprises to deploy generative and agentic AI amended and faster.

Market absorption has been mostly neutral arsenic the stock terms has fallen lone somewhat by $1.52 since the release. However, analysts person differing views connected the news. On December 9, Stifel maintained a Buy standing connected the banal and raised the terms people from $295 to $325. On the aforesaid day, UBS maintained its Sell standing connected International Business Machines Corporation (NYSE:IBM) with a $210 terms target.

Analysts astatine Stifel noted that the acquisition is simply a coagulated strategical determination arsenic the real-time information streaming is becoming progressively important with AI. Moreover, the steadfast besides noted that the institution has historically achieved optimal leverage from specified acquisitions.

On the different hand, analysts astatine UBS called the woody dilutive for the company. The steadfast added that the woody is expected to adjacent by the extremity of 2026 and is expected to adhd lone 2% to the company’s consolidated gross growth. UBS projects that if IBM finances the woody utilizing equilibrium expanse currency and debt, the transaction is expected to adhd $385 cardinal to the company’s involvement disbursal by 2027. Therefore, suggesting the highly dilutive quality of the deal, UBS maintained a Sell rating.

International Business Machines Corporation (NYSE:IBM) has been tagged arsenic 1 of the pioneers successful the quantum computing industry, with its IBM Quantum System One regarded arsenic 1 of the earliest efforts astatine quantum computing.

While we admit the imaginable of IBM arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.