By Alex Sirois
Publication Date: 2026-08-17 13:57:00
© Joern Pollex / Getty Images
IBM (NYSE:IBM | IBM Price Prediction) at $234.32 is a Buy. The stock has rebounded 11.74% in the last month off a mid-July capitulation, and the drivers of that rebound remain intact.
IBM is a hybrid-cloud and enterprise-AI franchise wrapped around one of the most durable software and mainframe installed bases in technology. Software is now roughly 45% of total revenue, with Red Hat, Data, Automation, and transaction-processing software running on IBM Z. The stock is down from a 52-week high of $330.09 after a rough Q2 shook confidence in the AI growth story.
Why The Franchise Case Is Getting Stronger
The engine is accelerating where it matters. In Q2 2026, Red Hat grew 11%, Data grew 19%, and Distributed Infrastructure posted its best quarter on record at 37% growth with a $500 million backlog. Software ARR reached $24.6 billion, up 8% YoY, with 80% of software revenue now recurring.
The generative-AI book of business is real, crossing…
