IBM closed at $262.38 (+1.10%) on February 13, showing signs of recovery following a recent -12.1% decline from its February peak amid broader tech sector concerns regarding AI infrastructure costs.
- Analysts maintain a Hold (Zacks Rank #3) rating, projecting 5.5% sales growth and 6.7% EPS growth for 2026.
- While the watsonx AI platform strengthens its position against Intel, ongoing competition from AWS and Azure continues to pressure margins.
- The stock currently offers relative valuation appeal with a 3.44 forward P/S ratio, trading lower than Intel’s 4.31.