Should I buy IBM stock in 2025?

What is IBM?

How much is IBM stock?

The price of IBM stock is declining this week. Currently trading at $258.69, IBM has seen a 24-hour drop of $1.55 (-0.60%) and a decrease of 0.84% over the past week. The company's market capitalisation stands at $240.43 billion, with an average three-month daily trading volume of 4.68 million shares. IBM’s price/earnings (P/E) ratio is 44.22, while the dividend yield is 2.60% and the stock beta is 0.63, signalling lower volatility. While IBM remains stable compared to broader markets, it’s wise for Irish investors to keep an eye on short-term movements amid changing global tech trends.

Our complete analysis of IBM stock

Having thoroughly reviewed IBM’s latest financial results and analysed the stock’s multi-year performance, our proprietary methodology integrates financial ratios, technical signals, sector trends, and peer benchmarking to form a rigorous investment view. Over the past three years, IBM has undergone a notable transformation in both scale and strategic focus, culminating in new growth vectors in AI and hybrid cloud. So, why might IBM stock once again become a strategic entry point into the global technology sector in 2025?

Recent Performance and Market Context

Over the last twelve months, IBM shares have delivered an impressive return of +54.9%, outperforming many large-cap technology peers and the broader S&P 500 Technology index. This surge is underscored by a robust 13.75% gain over the preceding six months, signalling resilience amid ongoing sector volatility. The recent stability of IBM’s share price – with minor weekly declines of -0.84% and an intraday pullback of just -0.6% to $258.69 (30 May 2025) – reflects solid market confidence in the stock’s underlying transformation strategy.

Key Events

• Q1 2025 earnings: IBM posted $14.5 billion in revenue, a 2% increase at constant currency, and a remarkable $1.60 EPS versus the $1.40 consensus—beating analyst expectations by over 14% and confirming operational momentum.
• HashiCorp acquisition: The $6.4 billion purchase finalised in February 2025 cements IBM’s leadership in hybrid cloud and infrastructure automation, unlocking synergies that are already reflected in software segment growth (+7%).

IBM’s transformation also benefits from a supportive macro framework, especially as enterprise IT spending accelerates with digitalisation and AI, and regulatory risk for data handling and cloud operations increasingly becomes a source of competitive advantage for legacy technology leaders. European and Irish tech investors, in particular, may appreciate IBM’s strengthened footing as AI adoption booms in developed markets.

Technical Analysis

While the technical profile of IBM currently displays some short-term caution signals, the intermediate and long-term structure remains compelling for buyers seeking well-timed entries:

• Relative Strength Index (RSI): At 41.1, the 14-day RSI reflects a move toward oversold territory, suggesting weakening short-term momentum but also proximity to support and potential mean-reversion.
• MACD: The -0.97 reading signals modest bearishness, yet aligns with a phase that often precedes basing and subsequent trend reversal, especially as prior corrections have led to renewed bullish waves in IBM historically.
• Moving Averages: The 20-, 50-, and 100-day moving averages all sit just above current prices ($260.85, $261.62, $260.27 respectively), indicating ongoing consolidation. Importantly, the 200-day moving average at $250.77 provides robust technical support, reinforcing longer-term uptrend validity.
• Golden Cross: The 50-day MA remains above the 200-day MA, a classic technical bullish indicator that frequently marks the onset of further advances for blue-chip tech stocks.
• Support and Resistance: A strong support zone at $214.51 anchors downside, while resistance at $268.41 presents the next key test for upward momentum.

Collectively, although short-term momentum is negative, IBM’s technical structure is primed for a rebound—especially appealing for investors positioning ahead of the next demand wave.

Fundamental Analysis

IBM’s recent financial metrics reinforce the company’s status as a value-oriented technology play with renewed growth potential:

• Revenue and Profitability: The Q1 2025 figures showcased 2% revenue growth at constant currency, but most crucially, adjusted EBITDA reached $3.4 billion with margins expanding by 240 basis points. Software, IBM’s key segment, grew 7% year-on-year to $6.3 billion, validating the pivot toward scalable, high-margin platforms.
• Earnings Outperformance: The $1.60 EPS handily beat expectations, reflecting both operational leverage and success in executing on cost discipline.
• Attractive Valuation: At current levels, IBM trades on a P/E of 44.2 (TTM) and a normalised P/E of 25.2, with a forward dividend yield of 2.60%. On a relative basis, IBM’s risk-adjusted valuation appears attractive when compared to “growth-at-any-price” names in the mega-cap tech peer group – particularly considering a beta of just 0.63, evidencing far below-average volatility.
• Strategic Positioning: Recent moves—most notably the HashiCorp integration and ongoing Red Hat expansion—demonstrate both strategic clarity and a savvy approach to next-generation infrastructure. IBM’s watsonx platform cements its thought leadership in enterprise AI, with 95% of Fortune 500 companies in its client base.
• Brand and Market Share: The IBM brand remains synonymous with reliability, enterprise security, and mission-critical IT. Its deep penetration across multiple verticals ensures stable cash flows and positions the company to execute its AI and cloud vision from a position of strength.

These fundamentals justify renewed interest, suggesting IBM may be entering a new bullish phase characterised by both income stability and capital appreciation.

Volume and Liquidity

IBM’s liquidity profile stands out as a mark of confidence:

• Trading Volume: With an average daily volume of 4.68 million shares, IBM has ample liquidity to accommodate institutional flows as well as retail activity, ensuring price efficiency and minimal slippage on large trades.
• Market Capitalisation and Float: At $240.43 billion and 929.4 million shares outstanding, IBM’s float is substantial enough to facilitate active price discovery. The scale and diversity of IBM’s shareholder base help moderate volatility and support dynamic valuation adjustments as new catalysts materialise.

A liquid, widely-held equity like IBM is uniquely well-positioned for investors seeking exposure to the technological renaissance without taking on the liquidity risks of smaller growth stocks.

Catalysts and Positive Outlook

Looking ahead, IBM’s outlook is buoyed by several powerful catalysts and sector trends:

• AI Investment Boom: Enterprise AI spending is projected to double over the next two years. IBM’s commitment to “embedding AI everywhere” through its watsonx suite and Red Hat’s virtualisation tools positions the company at the heart of this digital arms race.
• HashiCorp Integration: Expect continued news-flow around cross-selling and hybrid cloud synergies as the $6.4 billion HashiCorp deal becomes embedded in client solutions, with early signs of product integration already filtering through earnings.
• Partnership Ecosystem: Strategic alliances with market leaders like Adobe, AWS, Microsoft, Oracle, and Salesforce open channels for scale and technology co-development, further reinforcing competitive moats.
• Cash Flow and Dividend: Management forecasts $13.5 billion in free cash flow for 2025 and at least 5% constant-currency revenue growth, supporting both share repurchase flexibility and dividend continuity. For income-seeking investors in Ireland and Europe, this reliability is particularly attractive amidst global uncertainty.
• ESG and Regulatory Advantage: As global scrutiny of tech governance rises, IBM’s legacy of compliance and responsible stewardship increasingly looks like a competitive differentiator.

These forward-looking factors suggest IBM is favourably exposed to macro- and sector-wide tailwinds, adding depth to an already compelling investment scenario.

Investment Strategies

IBM’s current technical and fundamental profile supports several considered entry approaches:

• Short-Term Positioning: The prevailing short-term technical weakness, with RSI near 41 and MACD in negative territory, suggests potential for an opportunistic entry ahead of an anticipated rebound. Accumulating positions near the robust $250–255 support may enable favourable risk/reward as buyers return.
• Medium-Term Play: With multiple catalysts—HashiCorp integration updates, further AI rollouts, and ongoing positive earnings momentum—there is a strong argument for maintaining positions through the second half of 2025 in anticipation of further re-rating.
• Long-Term Holding: For investors with a longer time horizon, IBM’s structural transformation, stable dividend, and resilience through the cycle provide a foundation for both value preservation and capital growth. The company’s presence in almost every major enterprise IT project globally forms a rare moat.
• Ideal Timing: Investors might view the current technical consolidation as “a healthy pause,” with an opportunity to initiate or add to holdings before the next wave of bullish catalysts—be that the next earnings release or major AI contract announcements.

This multi-horizon approach appears well-matched to both active traders and buy-and-hold investors seeking predictable participation in secular growth trends.

Is It the Right Time to Buy IBM?

Synthesising financial and technical perspectives, several strengths clearly emerge:

• Outperformance of technology indices, underpinned by robust 12-month and six-month gains.
• Mission-critical positioning in hybrid cloud and AI, reinforced through transformative deals (e.g., HashiCorp) and deep partnerships.
• Healthy margin expansion, earnings beats, and attractive valuation versus risk.
• Generous, sustainable dividend yield—an increasingly rare quality among tech stocks.
• Technical structure showing medium- to long-term bullish validity, while current soft momentum offers a potentially attractive entry zone.
• Ample liquidity and global institutional interest mitigate execution and volatility risks.

While prudent portfolio sizing and awareness of debt levels are advisable, the overall upside potential and strategic developments strongly suggest IBM represents an excellent opportunity in the technology sector at this juncture. After several years of transformation, IBM stands poised to convert operational momentum into sustained shareholder value.

For investors seeking a blend of innovation exposure, stable cash flows, and a clear pathway to further upside, IBM currently seems to represent a uniquely compelling case—one that could see the stock regain centre-stage among tech leaders as we approach 2025.

How to buy IBM stock in Ireland?

Buying IBM stock online as an Irish investor is straightforward and secure when using a regulated broker. Today, you have two convenient ways to access IBM shares: buying them directly (spot buying or ‘cash buying’), or trading through Contracts for Difference (CFDs). Each method suits different investor profiles, and both can be executed in just a few clicks after your online account is verified. To help you decide, we’ve detailed the differences and provided a comprehensive broker comparison further down the page.

Spot Buying

A cash or spot purchase means buying IBM shares outright via a regulated broker. You become the legal owner of the shares and benefit from dividends and any long-term price appreciation. Fees typically include a fixed commission per trade – for Irish investors, this might be around $5 per order (often billed in USD, which can vary with currency rates).

Example

Suppose IBM is trading at $258.69 per share. With a $1,000 stake, you could buy approximately 3 shares ($1,000 - $5 commission = $995, so $995 / $258.69 ≈ 3.8, rounded to 3 whole shares).
✔️ Gain scenario:
If the IBM share price rises by 10%, your shares are now worth around $1,100.
Result: That’s a $100 gross gain, i.e. +10% on your investment (commission excluded).

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on IBM’s share price movements without owning the shares themselves. This method appeals to active traders, as you can go long or short, use leverage to amplify exposure, and often benefit from tight spreads. Common fees include the spread (the difference between buy/sell prices) and overnight financing charges if you keep positions open for multiple days.

Example

You open a CFD position on IBM shares, investing $1,000 with 5x leverage. This gives you market exposure of $5,000.
✔️ Gain scenario:
If IBM’s price rises by 8%, your position gains 8% × 5 = 40%.
Result: That’s a $400 gain on your $1,000 stake (before spreads/financing fees are deducted).

Final Advice

Before investing, take the time to compare each broker’s fees, trading conditions, and available tools – these can make a significant difference to your returns. Whether you opt for spot buying or CFD trading depends on your investment goals and risk appetite. For an overview of regulated brokers serving Irish investors and a detailed fee comparison, see our brokerage table further down the page.

Our 7 tips for buying IBM stock

The latest news about IBM

IBM’s Q1 2025 results beat analyst expectations with strong revenue growth and margin expansion. The company reported $14.5 billion in revenue (+2% at constant currency) and delivered a 14.29% EPS surprise over consensus, highlighting robust execution and strong demand in its Software segment, which posted 7% year-on-year growth. This outperformance is particularly notable for investors in Ireland, where institutional participants and pension funds closely track U.S. blue chips for portfolio diversification and performance, indicating IBM’s continued appeal as a resilient, high-quality technology holding.

The finalization of the $6.4 billion HashiCorp acquisition enhances IBM’s hybrid cloud leadership and product portfolio. This major transaction, completed in February 2025, immediately strengthens IBM’s cloud strategy with advanced automation and secure application delivery—an area of growing importance for Irish enterprises accelerating their own digital and cloud transformations. Ireland, as a host to many multinationals and tech-driven sectors, will benefit from IBM’s enhanced solutions and capacities, supporting both its domestic market and multinational operations based in IE.

Strategic partnerships with global leaders such as Microsoft, AWS, Adobe, Oracle, and Salesforce have deepened in the last week, expanding IBM’s enterprise solution reach. These alliances, central to IBM’s hybrid-cloud and AI strategies, ensure Irish clients and IT integrators have early access to cutting-edge tools and integrated services, especially meaningful as Ireland’s tech ecosystem remains highly interconnected with U.S.-based cloud providers and software vendors.

IBM has reasserted its outlook for at least 5% annual revenue growth (constant currency) and $13.5 billion in 2025 free cash flow, underpinned by demand for enterprise AI. Double-digit growth in AI-driven software and the positive integration of Red Hat and HashiCorp drive management’s optimism. This is relevant for Irish investors and corporates, as the company’s forward guidance and visible, sustainable dividend (currently yielding 2.60%) support both capital appreciation and income stability sought by pension funds and long-term savers in Ireland.

IBM’s stock maintains a positive long-term technical trend, reinforced by its recent ‘golden cross,’ despite short-term bearish momentum. While recent technical indicators (RSI, MACD) suggest a near-term pullback, the 12-month return (+54.86%) and the golden cross signal continued underlying strength. With IBM widely held across Irish institutional funds and available through all main platforms, the technical picture remains supportive for investors seeking global technology exposure from Ireland, provided appropriate risk management for short-term volatility.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.