A Look At IBM (IBM) Valuation As Short Seller Critique Sparks Fresh Doubts On Its AI Direction

A Look At IBM (IBM) Valuation As Short Seller Critique Sparks Fresh Doubts On Its AI Direction

By Simply Wall St
Publication Date: 2026-02-18 13:08:00

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International Business Machines (IBM) stock has come under pressure after high profile short seller Jim Chanos questioned the company’s artificial intelligence focus, criticizing an emphasis on marketing and consulting instead of core technology development.

See our latest analysis for International Business Machines.

The recent criticism has landed during a weak patch for the stock, with a 7 day share price return of an 11.46% decline and a 30 day share price return of a 15.49% decline. However, the 1 year total shareholder return is slightly positive and the longer term 3 and 5 year total shareholder returns are very large. This suggests that shorter term momentum has cooled while longer term holders have still seen strong gains.

If IBM’s recent pullback has you reassessing your AI exposure, it could be a good time to see what else is out there…