Is IBM (IBM) Still Fairly Valued After a 38% One-Year Rally?

Is IBM (IBM) Still Fairly Valued After a 38% One-Year Rally?

By Simply Wall St
Publication Date: 2025-12-19 16:10:00

International Business Machines (IBM) has quietly pushed higher this year, with the stock up roughly 38% over the past year and about 13% in the past 3 months, outpacing broader tech benchmarks.

See our latest analysis for International Business Machines.

That strength has not been a straight line, though. The recent 7 day share price return of minus 2.84% follows a 30 day share price return of 4.13%. A 3 year total shareholder return of 136.65% signals that momentum remains firmly constructive rather than exhausted.

If IBM’s move has you thinking more broadly about enterprise tech, this could be a good moment to explore high growth tech and AI stocks as potential next wave beneficiaries.

But with IBM now trading above analysts’ average target and showing only modest fundamental growth, investors face a key question: is the stock still undervalued on its AI and hybrid cloud strategy, or is future growth already priced in?

With International Business Machines…