IBM clears fresh analyst targets, shares ride AI hardware optimism

By Julia Schmitt, Sector & Peer Group desk. Reviewed prior to publication on 2026-06-28, 13:09.

International Business Machines Corporation (US4592001014) sits in the S&P 500 with a renewed focus on AI hardware and cloud services. The NYSE-listed shares trade around 271 dollars after recent analyst moves by Morgan Stanley and JPMorgan that underline a more constructive view on the stock.Morgan Stanley price-target update

What Morgan Stanley signals

On June 23, Morgan Stanley lifted its price objective on IBM from 225 dollars to 267 dollars while reiterating an "Equal Weight" rating on the shares, citing stronger-than-expected enterprise server demand and AI-related infrastructure needs.Morgan Stanley analysis on IBM The bank noted that earnings from Dell and Hewlett Packard Enterprise suggest that compute demand remains relatively inelastic despite price increases, supporting a more optimistic stance on hardware-exposed names.

According to the same analysis, Morgan Stanley increased EPS estimates by roughly 5 to 6 percent for compute-exposed companies, a group that includes IBM’s infrastructure segment. This places IBM alongside peers in benefiting from refresh cycles and AI-associated infrastructure projects, even before factoring in the company’s own chip innovations.

JPMorgan turns more positive

JPMorgan has upgraded IBM from "Neutral" to "Overweight" and raised its price objective from 270 dollars to 291 dollars, highlighting confidence in a second-half 2026 acceleration in the company’s software business after a detailed review of the portfolio.JPMorgan upgrade reference The upgrade underscores IBM’s positioning in hybrid cloud and AI-driven software offerings, which could complement the hardware story built around new chip designs.

Separate consensus data compiled by MarketBeat shows IBM carrying an average "Moderate Buy" rating among 27 analysts, reflecting a mix of Buy and Hold recommendations across the coverage universe.MarketBeat consensus overview Institutional investors hold close to 59 percent of the shares, indicating that large funds continue to play a significant role in the stock’s ownership structure.

The product behind the stock

Beyond services, IBM recently showcased a prototype "nanostack" chip architecture at the sub-1-nanometer level aimed at AI workloads, with roughly 100 billion transistors on a fingernail-sized chip according to MarketBeat’s news summary. This experimental design is intended to support high-density compute for AI, reinforcing IBM’s long-standing role in advanced semiconductor research alongside its systems and consulting businesses.

Where the stock trades today

IBM shares (US4592001014) last traded on the NYSE at around 271.63 dollars as of 2026-06-28, 03:01 EDT, according to FinancialContent price data. The day’s range stood between 258.28 and 273.13 dollars, with a prior close of 258.27 dollars.

This article provides non-binding information on the IBM shares and does not constitute investment advice or a solicitation to buy or sell securities. Investors should conduct their own research or consult a qualified advisor before making investment decisions.