IBM Stock Hits 52-Week High — Citi Raises Price Target To $375 On Quantum Push, Says Stock Is ‘Misunderstood’

• Citi raises IBM price target to $375 from $285, maintaining a ‘Buy’ rating on the stock.
• Analyst points to IBM’s planned $10B investment in quantum computing over five years.
• IBM is seen as ‘underappreciated’ with potential exposure to a ~$850B federally supported quantum market.

International Business Machines Corp. (IBM) ended Tuesday’s session at a 52-week high, boosted by upbeat sentiment and a higher price target from an analyst.

IBM ended Tuesday’s session up 2.75%, before slipping in after-hours trading, down 0.67% at the time of writing. 

Citi Raises IBM Price Target

Citi turned bullish on the stock, raising its price target for IBM on Tuesday after the company outlined a major new investment push in quantum computing. The move reflects growing confidence in IBM’s long-term position in the emerging quantum technology market.

Citi lifted its price target on IBM to $375 from $285 and maintained a ‘Buy’ rating on the stock, according to TheFly. This indicates an upside potential of about 14.7% from its previous close. 

The upgrade follows IBM’s plan to invest an additional $10 billion over five years to strengthen its quantum computing strategy and capabilities.

According to the analyst, the timing and scale of the investment — coming shortly after IBM’s CHIPS Act grant win — signals strong confidence in its ability to compete in a quantum market estimated at roughly $850 billion and increasingly supported by federal initiatives. The analyst also described IBM as “underappreciated” and “misunderstood” by the broader market.

IBM Commits $10B To Expand Quantum Push

IBM said it will invest over $10 billion in the next five years to advance its quantum computing efforts. The spending will be directed toward research and development, capital expenditures, manufacturing scale-up, ecosystem partnerships, and strategic acquisitions.

The company said the investment is aimed at accelerating its roadmap, including its goal of delivering the world’s first large-scale, fault-tolerant quantum computer by 2029, while strengthening U.S.-based leadership in quantum technology.

IBM also highlighted its existing position in the sector, saying it operates the largest fleet of quantum computers globally, with more than 90 systems deployed through cloud access and on-site installations. These systems are currently used by over 340 organizations across industry, academia, healthcare, and government.

IBM Stock: What Stocktwits Retail Sentiment Says

On Stocktwits, retail sentiment around IBM was in the ‘extremely bullish’ territory, unchanged in the past 24 hours. Message volume was also ‘extremely high.’

IBM’s message volume surged over 167% in the past seven days and more than 6,500% over 30 days, indicating a sharp rise in chatter around the stock.

One bullish Stocktwits trader said IBM is in a “bump n run” setup and could break out toward $350+.

Another retail trader on Stocktwits projected a much higher upside, saying IBM could rally toward $600.

IBM stock has gained nearly 28% in the past 12 months.

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