International Business Machines- IBM stock forecast 2024, 2025, 2030, 2035, 2040

According to the Al stock price forecaster at FinTechBrains, the recent long-term IBM stock forecast predicts prices may linger between $189 – $199.18 in 2024, $229.73 in 2025, $247.98 in 2026, and leap further to $320.89 by the end of 2030 while making its all-time high of $411.83 in 2035 and $502.63 in 2040 

IBM stock long-term forecast after split | IBM stock 10-year forecast 

IBM stock daily forecast next week | IBM stock short-term prediction for tomorrow 

IBM stock 12-month short-term forecast 

IBM stock price chart 

IBM stock forecast for 2024 

By 19th/July/2024, IBM’s current market price was recorded at $183.25. Our Analysts forecast IBM’s stock price to linger between $189-$199.18 by the end of 2024. After the stock split, the all-time low IBM share price in 2024 would trade at $157.89. 

Reason –

 In 2024, IBM will be focusing on expanding its Al and automation tools through Watsonx, a 433-qubit-Osprey processor for advanced quantum computing with the new and enhancing hybrid cloud services via the acquisition of HashiCorp, Watson aims at providing real-time business insights and automated processes for business, Osprey processor will accelerate quantum computing and HashiCorp will give a new face to IBM’s cloud capabilities. Such significant innovation will drive IBM stock prices higher. 

IBM Stock Forecast for 2025 

Our analysts further foresee IBM per stock price to be traded at $229.73 in 2025 rising by +15% compared to the IBM stock price one year ago in 2024. While the predicted all-time low price of IBM stock would form a strong cushioning to the moderate bull run at $195.55 in 2025. 

Reason – 

2025 is going to be a year of technological advancement for IBM. The company will invest further in developing a 4000+ qubit system which will allow easy connection between multiple quantum processors to form a network allowing just little room for errors and making quantum computing more practical. While IBM might announce layoffs due to a shift in their management structure towards Al, the company will further support in the development of serverless quantum computing resources and enhance quantum software for easy integration of quantum processors with traditional CPUs and GPUs. 

IBM stock forecast for 2026 

 Our forecasting model considers the past IBM stock history to form an educated prediction and we anticipate IBM share prices to further climb by 8% from its last year and trade at its all-time high of $247.98 in 2026. 

Reason – 

IBM will focus more on AI and quantum robotics in 2026. They will also develop resources to use 5G technology for modern tech. By the end of 2026, they plan to train 2 million new AI experts. IBM aims to improve advanced quantum computing with edge computing, enhancing hybrid cloud and AI capabilities, which should attract more clients and increase revenue.

IBM stock forecast for 2027 

We expect IBM’s stock price to reach as high as $266.22 and as low as $229.94 in 2027. 

Reason – 

By 2027, foundation models will grow with more data and complexity, serving as the basis for training advanced machines. IBM will keep doubling the number of foundation model parameters and invest in new models. These new models and hybrid architectures will support multi-modal representations and dual-type processing. A more powerful Watsonx.ai will be available, with advanced infrastructure to support enterprise data warehouses using AI accelerators and software stacks.  

IBM stock forecast for 2028 

In 2028, IBM’s stock might hit its all-time high of $284.45 i.e. rise in share price by 7% from 2027. The all-time low will be at $247.16 in 2028. 

Reason – 

By 2028, IBM’s Quantum Flamingo will reach its peak performance, enabling multiple processors to work in parallel at incredibly high speeds. It will access all 15,000 gates with improved error correction. Alongside this technological advancement, IBM will focus on climate sustainability by investing in green data centers, promoting recycling methods, and aiming for carbon neutrality.

IBM stock forecast for 2029 

Analysts at FintechBrains predict IBM’s stock price to reach as high as $302.67 and as low as $264.38 in 2029. The year-on-year IBM stock price change was + 6%. 

Reason – 

As AI becomes more integral, IBM might reduce staff in some traditional roles. However, they plan to innovate with their new Starling quantum system, which can handle 100 million gates and solve complex problems with full error correction. This will boost IBM’s demand and profits, strengthening its market position.

IBM will also use AI and big data in healthcare for early disease detection through predictive analytics. Another significant innovation will be in Brain-Computer Interfaces, enabling direct digital connections between the human brain and machines.

These advancements are expected to drive IBM’s share prices up in the long term.

IBM Stock Forecast for 2030 

We predict IBM share prices to further ascend by +6% in 2030 compared to IBM stock price one year ago in 2029, marking its trade at $320.89 and maintaining its all-time low at $281.61 per IBM share price by the end of 2030. 

Reason – 

By the end of 2030, IBM plans to diversify its business by exploring new areas. They will introduce a system that combines different sensory technologies (like vision, touch, and hearing) to enhance robotics, augmented reality (AR), and virtual reality (VR). IBM’s Watsonx will continue to be used for training these technologies, but they will also launch personal AI assistants designed to work with these advanced sensory systems. This innovation is expected to significantly impact the healthcare industry.

IBM stock forecast for 2035-2040 

 The IBM share price will rise from being at $411.83 in 2035 to $502.63 in 2040 thereby making an overall total Year-on-year change of +25% in the next 5 years. On average the stock will climb upwards by  +4% to +5% annually, for IBM stock forecast in 5 years between 2035 to 2040. 

Reason – 

By 2040, IBM is expected to be worth $500 billion, still short of a trillion-dollar valuation. However, given its niche market, one smart innovation could push IBM to the trillion-dollar mark. Over the next five years, IBM’s Neuromorphic computing, which mimics the human brain, will become more stable, and quantum computers will be widely used. IBM will be run more by autonomous machines and self-optimizing networks.

The company aims to go carbon neutral by 2040, supporting climate goals. IBM’s stock prices will reach an all-time high due to its ongoing research and development in holographic communications, customized AI partners, and advanced machines for solving complex problems. With the unstoppable rise of AI, IBM’s stock will soar, but global regulations will be needed to manage the AI boom.

IBM short-term forecast through technical analysis. 

IBM’s share price is currently near its all-time high of $206. The stock has approached and rebounded from this level over four times, creating a strong resistance band. Sellers have consistently outnumbered buyers in this area. As of July 19, 2024, IBM’s price is $183.25, within this resistance band.

So there could be 2 short-term forecast scenarios here,

Scenario 1 :- 

If the sellers again outnumbered the buyers, and if the IBM share price falls beyond $161.82, then that could be a signal to short your IBM shares until it ends up at the target price for IBM at $101.63. 

Scenario 2 :-

Most of the time, when any resistance area gets tested more than 4 times, it usually is a breakout. At present, the IBM share price target is already testing the resistance band with good volume. 

So, if you are a risk-taking investor, then you could enter the trade now by buying IBM shares. 

But if you are a risk-averse investor, then wait until the target price for IBM shares breaches the resistance band and only buy the shares when the price crosses, the $207.30 mark. 

IBM long-term forecast through fundamental analysis. 

IBM’s financial performance and ratios show it’s doing quite well. But do you still feel that IBM stock price is a buy or sell?

Over the past five years, IBM’s average operating performance is 12.8, and its debt-to-equity ratio is 2.89, indicating moderate leverage. Despite carrying around $59 billion in debt consistently over these years, IBM has managed this efficiently.

The average P/E ratio over the last five years is about 30.2, meaning investors are willing to pay 30 times IBM’s earnings per share. Additionally, an average ROE of 29.56% shows IBM is generating nearly 30% returns on shareholders’ equity.

These numbers highlight IBM as a strong performer. However, the slightly inflated P/E ratio suggests that IBM’s share price might be a bit overvalued as of July 2024. Still, financial ratios alone don’t tell the whole story, so let’s look deeper into the financial statements to determine if IBM stock price is a buy or sell.

It’s quite evident that all the financial attributes for the last 5 years are positive and performing well. While the rise in net sales revenue and net income says, the company is successfully able to make improve revenue year on year by increasing their sales. Lastly, a free cash flow of $13B in 2024 June is no doubt a positive sentiment about IBM giving it the ability to reinvest or diversify its business. 

Frequently Asked Questions | FAQs

What is the future of IBM? 

IBM has a clear plan for the next decade, and it’s impressive. The company is a leader in quantum computing and will continue to push boundaries with new upgrades and innovations. They’re also investing heavily in AI, including AI assistants and multimodal systems. Beyond that, IBM plans to expand into areas like healthcare, robotics, neuroscience, and space engineering. 

IBM Stock price history for the last 10 years 

Is it a good time to buy IBM stock ? | Conclusion

IBM’s stock is currently trading at $183.25 in July 2024. Based on its Discounted Cash Flow (DCF) value, it should be worth about $118.31, meaning it’s overvalued by 35%. However, if we look at its Relative Value, it should be worth $227.38. So, by this measure, the stock is overvalued by 19%.

Looking at the above financial ratios, statements, DCF, and relative valuation, the IBM stock is on average overvalued by 16% but our IBM stock forecast indicates a rise in IBM share prices soon. The current fundamental and technical analysis of IBM screams of buying opportunities for investors. Also, IBM being so heavily invested in the ongoing trend of Al, Quantum computing, IoT/robotics, and blockchain makes it a company to look up to for every investor resulting in soaring IBM share prices in the future. 

Note – Kindly use this blog information for educational purposes only. Investments are usually risky and subject to market emotions, so consult a licensed financial advisor before investing in the stocks.