IBM Confluent Deal and Claude Code bring AI focus into perspective

• IBM (NYSE:IBM) is acquiring data streaming and analytics company Confluent to strengthen its AI and cloud computing offerings for enterprise customers.
• The deal is aimed at strengthening IBM’s role in mission-critical workloads across Fortune 500 customers that rely on real-time data and hybrid cloud setups.
• Anthropic has launched Claude Code, a coding assistant that can work with legacy COBOL, the language at the heart of many IBM mainframe environments.
• Claude Code introduces external tools to help modernize COBOL-based systems, touching on an area that has long been a core focus of IBM’s mainframe and consulting services.

For investors who follow IBM, these moves sit at the intersection of AI, data infrastructure, and long-standing mainframe workloads. While the Confluent acquisition is directly tied to IBM’s AI and hybrid cloud efforts, Anthropic’s Claude Code highlights how third-party AI tools are beginning to address long-standing COBOL and legacy modernization needs.

Looking ahead, stay tuned to see how IBM integrates Confluent into its existing software, consulting, and cloud portfolio, and how it compares to the capabilities clients can access from tools like Claude Code. The balance between IBM’s internal products and external AI services could shape how it positions itself among large enterprises that still rely heavily on mainframe and COBOL-based systems.

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International Business Machines has 1 risk reported. Find out which ones may affect your investment.

quick evaluation

• ✅ Price and analyst targets: At $245.28 versus the consensus target of about $321.95, the price is about 24% below analyst expectations.
• ✅ Simply Wall Street Ratings:Simply Wall Street currently considers IBM to be undervalued, trading approximately 34.3% below estimated fair value.
• ❌ Recent momentum: The ~20% drop in 30-day returns suggests weak short-term momentum.

There’s only one way to know when is the right time to buy, sell, or hold International Business Machines. For the latest fair value analysis of International Business Machines, check out Simply Wall St’s company report.

Key considerations

• 📊 The deal with Confluent and IBM’s COBOL rollout means this news directly connects IBM to data streaming, AI workloads, and long-running mainframe use cases.
• 📊 It may be helpful to monitor how quickly Confluent integrates into IBM’s software and consulting stack, and whether clients use in-house tools or external options such as Claude Code.
• ⚠️ Given the risks associated with rising debt levels, some investors may want to track how the acquisition funds impact IBM’s balance sheet over the long term.

dig deeper

For the complete picture, including additional risks and rewards, check out our complete International Business Machines analysis. You can also visit International Business Machines’ community page to see how other investors think this latest news will impact the company’s story.

This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

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