Jim Cramer Still Recommends IBM Shares

AnalystCorporate ActionProduct / Tech
โดย Insider Monkey·Read original
Summary · why it matters

Jim Cramer continues to recommend International Business Machines Corporation shares, citing its quantum computing and software businesses as key strengths. He highlighted a recent Bank of America report that raised IBM's price target and earnings per share estimates, noting the stock trades at 22 times next year's earnings. Cramer described IBM as a tech stock for investors who want to avoid exposure to data centers. IBM recently published the industry's first reference architecture for quantum-centric supercomputing and expects 2026 to mark the first time a quantum computer outperforms all classical-only methods on a real scientific problem. The company also completed an approximately $11 billion acquisition of Confluent to strengthen real-time enterprise data streaming.

Impact on stocks 2

Quantum Computing▲ · 1 stocks
International Business Machines
IBM
▲ PositiveTechnologyCapitalrelevance

IBM published the first reference architecture for quantum-centric supercomputing and expects quantum advantage by 2026.

Financials▲ · 1 stocks

Theme Impact 2

Off-coverage companies 1

Confluent, Inc.Private▲ Positive
Capitalrelevance

IBM completed an $11B acquisition of Confluent, which is positive for Confluent shareholders.

Related news

IBM Raises Dividend a Penny to $1.69, Extending 31-Year Streak

IBM raised its quarterly dividend by a single penny, from $1.68 to $1.69, in a declaration dated April 22, 2026, marking its 31st consecutive year of increases but adding only about four cents to the annualized payout. The one-cent step continues a run of five straight penny bumps, a sharp slowdown from 2015, when the quarterly payout rose from $1.10 to $1.30. IBM's dividend remains well covered: the company produced $14.73 billion in free cash flow in 2025 against a payout of $6.255 billion, and CFO Jim Kavanaugh told analysts on the Q2 call that IBM returned $3.2 billion to shareholders in dividends through the first half of the year. The cash is increasingly being redirected toward acquisitions of Confluent and HashiCorp, $62 billion in debt, and more than $10 billion committed to quantum computing over five years, while CEO Arvind Krishna pointed to a generative AI book of business exceeding $12.5 billion. IBM offers the highest yield among its peers at 2.83% but the slowest growth, trailing Microsoft, which pushed its quarterly dividend from $0.91 to $0.98 in September on a run from $0.13 in 2010, as well as Cisco Systems and Oracle. With IBM shares down 20.71% year to date at $230.17, the total-return case now rests on the AI reinvestment thesis rather than dividend growth.
IBM ▲
Quantum Computing
24/7 Wall St·1hRead more →
▲3impact 4

IBM Wins $1 Billion Quantum Foundry Award, Adds CUBE AI Governance Deal

International Business Machines said its subsidiary Anderon won a US$1b federal award to build a U.S. quantum chip foundry, alongside a further US$1b IBM commitment to the project. The planned facility is described as the first stand-alone quantum wafer foundry in the U.S., focused on quantum chip manufacturing under CHIPS Act funding. IBM also announced a partnership with regulatory intelligence provider CUBE to integrate real time global AI rule monitoring into watsonx.governance. The Anderon quantum foundry award and CUBE tie up together represent a US$2b quantum and governance push by the company.
IBM ▲7112.JP ▲
Quantum Computing ▲
Simply Wall St·1dRead more →
▲

Nvidia Launches CUDA-Q Logical for Fault-Tolerant Quantum Computing

Nvidia launched CUDA-Q Logical, an open-source orchestration layer built into its CUDA-Q platform, on September 14. The tool is designed to help researchers develop applications for fault-tolerant quantum computers using logical qubits, and it is available on GitHub. Fermi National Accelerator Laboratory, IQM Quantum Computers, Sandia National Laboratories, Infleqtion, QCDesign, and Quantum Motion are already using the technology. The launch supports Nvidia's broader strategy of making its GPUs the key classical computing layer for hybrid quantum-classical systems, though Jensen Huang said in January 2025 that useful quantum computers could still be 15 to 30 years away, a view tied to the unresolved challenge of scaling quantum hardware. Hedge fund ownership of Nvidia rose from 275 funds at the end of Q1 2026 to 285 funds at the end of Q2 2026, while short interest stood at 1.29% of float as of August 31, 2026.
NVDA ▲INFQ ▲
Quantum Computing ▲Artificial Intelligence
Insider Monkey·1dRead more →
© 2026 MarketDXNews