IBM's Quantum Computing Breakthrough Boosts Jim Cramer's Bullish Outlook

Jim Cramer is bullish on IBM stock due to its leadership in quantum computing and strong software lineup. He believes the current share price presents a good buying opportunity. Analysts have a Moderate Buy consensus rating on IBM stock with an average price target of $296.15, implying 23.7% upside potential.

Jim Cramer has expressed bullish sentiment on IBM stock, citing the company's leadership in quantum computing and a strong software lineup as key drivers. Analysts have a Moderate Buy consensus rating on IBM stock, with an average price target of $296.15, suggesting a 23.7% upside potential.

IBM reported quarterly earnings of $2.80 per share, beating the consensus estimate of $2.65 by $0.15. The company's revenue for the quarter was $16.98 billion, up 7.7% year-over-year. The technology giant operates through Software, Consulting, Infrastructure, and Financing segments, offering hybrid cloud and AI platforms that facilitate digital and AI transformations.

Analysts have recently revised their price targets for IBM stock. BMO Capital Markets increased their target from $260.00 to $300.00, while Goldman Sachs raised their target from $270.00 to $310.00. Morgan Stanley lowered their target from $237.00 to $233.00, and JPMorgan Chase & Co. raised their target from $244.00 to $290.00. Stifel Nicolaus also increased their target from $290.00 to $310.00. The overall average rating is "Moderate Buy" with a consensus target price of $268.75 [2].

Investors should note that IBM's stock has seen significant institutional buying. Brooklyn Investment Group boosted its holdings by 32.7% in the first quarter, owning 6,622 shares worth $1,647,000. Alliance Wealth Advisors LLC UT reduced its stake by 9.4%, now holding 13,983 shares worth $3,477,000. Other institutional investors have also made notable changes to their positions in IBM, indicating continued interest in the company's prospects [3].

IBM's strong quarterly performance and the continued support from analysts make it an attractive investment opportunity. As Jim Cramer suggests, the current share price presents a good buying opportunity for investors looking to capitalize on IBM's leadership in quantum computing and its robust software offerings.

References:
[1] https://www.benzinga.com/markets/earnings/25/08/47139811/quantum-computing-stock-slides-after-q2-earnings-miss-expectations
[2] https://www.marketbeat.com/instant-alerts/filing-alliance-wealth-advisors-llc-ut-decreases-stock-position-in-international-business-machines-corporation-nyseibm-2025-08-16/
[3] https://www.marketbeat.com/instant-alerts/filing-international-business-machines-corporation-ibm-shares-acquired-by-brooklyn-investment-group-2025-08-18/