International Business Machines Corporation (NYSE:IBM) Top 12 Dow stocks to buy in 2026.
On January 5th, RBC Capital Markets raised their price target on International Business Machines Corporation (NYSE:IBM) from $300 to $350 and maintained an Outperform rating.
The company said 2026 could be the year in which AI tailwinds become more pronounced for companies ready for enterprise adoption. Those who don't may continue to face pressure from the “AI is the death of software” view. Business spending appears to be stable, with some areas showing improvement. Analysts noted that GenAI is driving innovation, even as management remains cautious about guidance for early 2026.
International Business Machines Corporation (NYSE:IBM) is seeing solid momentum across its AI portfolio, including watsonx and Red Hat AI. The company is also partnering with Anthropic to integrate Claude large-scale language models into IBM's software products, adding depth to its AI capabilities.
Hardware plays a similar role. IBM's z17 mainframe platform is built with advanced AI inference capabilities to support infrastructure demands. In the third quarter, the combination led to 10% growth in the software business and 17% growth in the infrastructure segment.
International Business Machines Corporation (NYSE:IBM) serves businesses around the world with a focus on hybrid cloud, artificial intelligence, and consulting services.
While we see IBM's potential as an investment, we believe certain AI stocks have greater upside potential and less downside risk. If you're looking for highly undervalued AI stocks that could also benefit greatly from Trump-era tariffs and onshoring trends, check out our free report. Best short-term AI stocks.
Read next: 14 Best Dividend Growth Stocks to Buy and Hold in 2026 13 Best January Dividend Stocks for Investment
Disclosure: None.
