IBM Stock Analysis: 2x Rise On Back of Strong Fundamentals But Valuations Stretched
International Business Machines stock (NYSE: IBM) has delivered impressive returns with a 28% year-to-date gain, significantly outperforming the broader S&P 500 index’s 12% return. This strong performance reflects IBM’s successful strategic pivot toward hybrid cloud solutions and AI technologies, particularly generative AI, which has emerged as a significant growth driver.
Over a broader timeline, IBM stock has more than doubled since early 2023, demonstrating the market’s confidence in the company’s transformation strategy. IBM’s remarkable stock appreciation can be attributed to three primary factors:
- Earnings growth: A 20% rise in adjusted net income, increasing from $8.3 billion in 2022 to $10.0 billion…
