IBM Price Target Hiked 31.6% to $375 on $10B Quantum Investment Plan
IBM•Citi raised IBM’s price target to $375 from $285 and kept a Buy rating, implying 15% upside on its quantum computing strategy. IBM will invest $10 billion over five years to advance R&D, manufacturing and partnerships for a fault-tolerant quantum computer by 2029 in an $850 billion federal market.
1. Price Target Increase
Citi raised its price target for IBM to $375 from $285 and maintained a Buy rating, implying roughly 15% upside from the previous close. The upgrade reflects growing confidence in IBM’s long-term position in quantum computing following its CHIPS Act grant win.
2. $10B Quantum Investment Plan
IBM announced a $10 billion investment over five years to accelerate research, development, manufacturing scale-up, ecosystem partnerships and strategic acquisitions in quantum computing. The company aims to deliver a large-scale, fault-tolerant quantum computer by 2029 and strengthen U.S. leadership in a market estimated at $850 billion.
3. Market Reaction and Outlook
IBM shares climbed 2.75% to a 52-week high before modestly retreating in after-hours trading, driven by the new price target and quantum push. Investors highlight IBM’s deployment of over 90 quantum systems across more than 340 organizations as evidence of its underappreciated market position.
