Citi Sees IBM Strengthening its Position in the Emerging Quantum Computing Market - Yahoo Finance
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Citi Sees IBM Strengthening its Position in the Emerging Quantum Computing Market Vardah Gill Thu, June 4, 2026 at 10:48 AM EDT 2 min read IBM -1.26% International Business Machines Corporation (NYSE:IBM) is included among the 10 No-Brainer Dividend Stocks to Buy. Citi Sees IBM Strengthening its Position in the Emerging Quantum Computing Market On June 3, Citi analyst Fatima Boolani raised her price recommendation on International Business Machines Corporation (NYSE:IBM) to $375 from $285. She reiterated a Buy rating on the shares. The move followed IBM’s announcement that it plans to invest an additional $10 billion over the next five years to strengthen its position in quantum computing and advance its long-term strategy in the field. According to Boolani, committing $10 billion in new investment so soon after securing a significant CHIPS Act grant “signals high confidence and preparedness” toward capturing what she described as an approximately $850 billion quantum market that is likely to receive strong federal support. The analyst also said IBM remains “underappreciated” and “misunderstood.” A few days earlier, on June 1, Barclays initiated coverage of IBM with an Overweight rating. It also set a $350 price target on the stock. In a research note, the firm said IBM has built a “stable growth engine around its very defensible software portfolio.” Barclays believes that the foundation should support “solid” future growth and improved margins. The firm also views quantum computing as a “very interesting option value” and considers IBM an early leader in the space.
International Business Machines Corporation (NYSE:IBM) provides hybrid cloud, artificial intelligence (AI), and consulting services worldwide. The company operates through three main business segments: Software, Consulting, and Infrastructure, along with a Financing segment. While we acknowledge the potential of IBM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 15 Best Dividend Paying Stocks to Buy Right Now and 10 Best Long-Term Dividend Stocks to Invest In According to Billionaires Disclosure: None.
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