1 Clear Signal to Buy International Business Machines Stock Right Now
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By Reuben Gregg Brewer – Mar 21, 2026 at 9:15AM ESTKey PointsInternational Business Machines is a gigantic tech company with an over 100-year history.It has proven adept at providing its business customers with the services they need while also investing in the tech of the future.International Business Machines (IBM 1.56%) stock surged back to life over the last three years, more than doubling in value. That remains true despite a material pullback in 2026 as investors worry about the impact that artificial intelligence (AI) will have on its business. Here's why now could still be a good time to buy IBM if you are a long-term investor.
International Business Machines changes with the times The main reason to buy IBM now, after a recent drawdown, is the technology giant's quantum computing business. While AI is the darling of Wall Street today, quantum is waiting in the wings to join, if not take over, the spotlight. AI uses massive amounts of computer power, and quantum has the potential to vastly increase the amount of computing power available. Image source: Getty Images. However, the reason to buy IBM stock isn't directly related to quantum computing. That's really a sign of a much bigger story. To understand IBM, you really need to go back about 100 years, to the company's founding. When IBM started out, it made things like scales. That's a far cry from quantum computing, which is the important takeaway. IBM didn't simply spring into existence; it evolved and changed over time into the business it is today. The company has proven, many times over, that it can keep pace with the technology that its largely business customers need and want. IBM has a unique culture Not many companies manage to survive as long as IBM has. It requires a specific culture that lives beyond any single employee, generation, or technology. Right now, investors are worried that AI will hurt IBM's business. It might in the near term, but over the long term, the company is highly likely to use AI as a tool to better serve its customers. ExpandNYSE: IBMInternational Business MachinesToday's Change(-1.56%) $-3.90Current Price$246.47Key Data PointsMarket Cap$227BDay's Range$244.59 - $250.1252wk Range$214.50 - $324.90Volume236KAvg Vol5.7MGross Margin57.59%Dividend Yield2.78% Quantum is one example of how fears about AI could be overblown with IBM, given that quantum is likely to work hand in hand with AI. However, there are smaller ways in which AI will likely help. Notably, IBM provides services to companies running older operating systems, such as COBOL. AI may be able to quickly address coding issues with such systems, but it likely won't be able to provide the business logic and process flow that specific customers need to actually run their businesses. That's where a human consultant comes in. Aided by AI, IBM will be able to work more quickly and efficiently. Wall Street is likely overreacting There is a very real risk that IBM's business will be negatively impacted by AI in the short term. However, its investments in next-generation tech like quantum and its long history of evolving with the technology sector suggest that IBM will remain relevant and thriving for decades to come.Read NextMar 17, 2026 •By Matt Frankel, CFPForget Pure-Play Quantum Computing Stocks. These 2 Beaten-Down Giants May Be the Smarter BetMar 16, 2026 •By Leo SunGot $5,000? 2 Quantum Computing Stocks That Insiders Haven't Stopped BuyingMar 12, 2026 •By Motley Fool StaffThe Motley Fool Interviews IBM CFO Jim KavanaughMar 4, 2026 •By Reuben Gregg BrewerWhy I'm Watching IBM Stock Heading Into MarchMar 3, 2026 •By Reuben Gregg BrewerIf I Could Own Only 1 Quantum Computing Stock for 2026, It Would Be ThisMar 1, 2026 •By Matthew BenjaminCould AI Crash the Economy in 2 Years?
One Research Firm Says Yes.About the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedInternational Business MachinesNYSE: IBM$246.48(-1.56%)-$3.90*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.