How Investors Are Reacting To IBM's Quantum Supercomputer Partnership With AMD and Tech Conference Push

• Earlier this month, IBM presented at both Gastech Exhibition & Conference 2025 and HR Tech 2025, while also announcing a partnership with AMD to develop a fault-tolerant quantum supercomputer expected by the end of the decade, with a demonstration planned later this year.
• This collaboration highlights IBM's increasing commitment to quantum computing and advanced AI, signaling a drive to build leadership in next-generation technology infrastructure.
• We'll look at how IBM's quantum computing push with AMD could influence its broader investment outlook and technology leadership.

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International Business Machines Investment Narrative Recap

To be a shareholder in IBM today, you need to believe the company’s transformation, anchored in hybrid cloud, AI, and now quantum partnerships, can offset pressures from weaker software sales and navigate ongoing macro risks. While the new AMD collaboration shows momentum in next-generation infrastructure, this news does not materially impact IBM’s primary near-term catalyst: a sustained recovery in consulting and hybrid cloud demand. The leading risk remains client caution delaying discretionary tech projects, especially in uncertain economic conditions.

One recent announcement standing out alongside this quantum push is IBM’s commitment of US$150 billion for research and manufacturing expansion in the US. This underpins the view that material long-term investment in advanced computing can reinforce IBM’s position as a solutions provider, but in the near term, it is the rebound in core software and consulting revenue that remains pivotal for the stock’s outlook.

In contrast, investors should also be aware of lingering concerns around IBM’s reliance on consumption-based software, where a macro slowdown or increasing competition from hyperscale cloud providers could...

Read the full narrative on International Business Machines (it's free!)

International Business Machines is projected to reach $74.4 billion in revenue and $10.5 billion in earnings by 2028. This outlook is based on an assumed annual revenue growth rate of 5.1%, and reflects an earnings increase of $4.6 billion from current earnings of $5.9 billion.

Uncover how International Business Machines' forecasts yield a $281.32 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Some analysts take a much more cautious approach. For example, before this news, the lowest analyst forecasts saw IBM’s revenues rising just 4.6 percent a year and US$8.8 billion in earnings by 2028, warning that public cloud competition could gradually erode legacy revenue streams. Your view of IBM may depend on whether you think new initiatives like the AMD partnership can meaningfully change those expectations.

Explore 15 other fair value estimates on International Business Machines - why the stock might be worth as much as 36% more than the current price!

Build Your Own International Business Machines Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your International Business Machines research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free International Business Machines research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate International Business Machines' overall financial health at a glance.

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

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