In a 2017 CNBC interview, Warren Buffett reflected on his 2011 purchase of International Business Machines, acknowledging that IBM’s performance fell short of expectations as it encountered “pretty tough competitors.” Despite initially valuing IBM’s legacy hardware and services business, Berkshire Hathaway reduced its stake by 2017, illustrating Buffett’s belief that IBM failed to maintain a durable competitive moat. This experience tempered Buffett’s appetite for tech stocks until Berkshire’s later investments in Apple and, eventually, Alphabet, highlighting IBM’s influence on one of the world’s most prominent value investors.

As part of a cohort of major technology providers, IBM contributes its Watson AI and cloud platform to the global handwriting recognition segment, which expanded from $2.75 billion in 2024 to $3.25 billion in 2025 at an 18.2% growth rate. Analysts project the market to reach $6.27 billion by 2029, driven by neural-network advancements and mobile integration. IBM’s partnerships with academic institutions and enterprise customers for digital documentation and pen-based computing solutions position the company to capture a significant share of the projected 17.8% compound annual growth through 2029.

In the digital aerospace MRO market—forecast to grow from $1.02 billion in 2025 to $1.88 billion by 2030 at a 12.8% CAGR—IBM offers blockchain traceability and IoT-enabled predictive maintenance solutions. Leveraging its global services network, IBM supports maintenance, repair and overhaul facilities with cloud-based MRO suites and advanced analytics that aim to minimize aircraft downtime. With North America leading adoption and European air traffic exceeding 970 million passengers in 2023, IBM’s digital offerings are poised to capture market share as airlines and MRO providers modernize operations.