International Business Machines Shares: Is IBM Lagging Behind the Tech Industry?

IBM: A Closer Look at the Tech Giant

International Business Machines Corporation (IBM), headquartered in Armonk, New York, commands a market capitalization of $214.4 billion. As a leading global provider of technology and consulting services, IBM specializes in enterprise solutions spanning hybrid cloud infrastructure, artificial intelligence, software, and IT consulting.

With a valuation surpassing $200 billion, IBM is recognized as a “mega-cap” stock, highlighting its significant presence and influence in the information technology sector. The company’s strengths include robust, long-term relationships with enterprise clients, a reliable stream of recurring revenue, and a prominent position in both hybrid cloud and AI services. IBM’s longstanding contracts with governments and major corporations contribute to its steady cash flow.

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IBM’s Recent Stock Performance

IBM’s share price has fallen 26.9% from its 52-week peak of $324.90, which was reached on November 12, 2025. Over the past three months, the stock has declined by 22%, significantly underperforming the State Street Technology Select Sector SPDR ETF (XLK), which gained 2% during the same period.

Year-to-date, IBM’s shares have dropped 19.8%, while XLK has experienced only a slight decrease. Looking at the past year, IBM is down 7.8%, in contrast to XLK’s robust 25.2% increase over the same timeframe.

IBM’s downward momentum is further confirmed by its position below the 200-day moving average since mid-February, and it has also remained under its 50-day moving average since early February.

Impact of Anthropic’s AI Announcement

On February 23, IBM’s stock plunged 13.2% after AI startup Anthropic introduced Claude Code, an AI tool designed to automate the modernization of COBOL—the foundational programming language for much of the world’s financial systems, which predominantly run on IBM mainframes. Investors reacted strongly to the news, fearing that this innovation could dramatically reduce the need for IBM’s mainframe consulting services by shortening complex migration projects from years to just a few months.

Comparative Performance

Despite its recent struggles, IBM has outperformed Accenture plc (ACN), which saw a 47.2% decline over the past year and a 28.6% drop year-to-date.

Analyst Outlook

Although IBM has lagged behind its peers, analysts maintain a cautiously positive view. The stock holds a consensus rating of “Moderate Buy” from 22 analysts, and the average price target of $320.38 represents a potential upside of 34.9% from current levels.