Should I invest in IBM stock in 2025?

What is IBM?

How much is IBM stock?

The price of IBM stock is rising this week. As of now, IBM is trading at $258.75, with a 24-hour increase of about 0.8% and a weekly gain of nearly 1.6%.

A beta of 0.64 suggests lower volatility compared to the market. With its stable dividend and momentum in hybrid cloud and AI, IBM draws interest from PH investors seeking balance between growth and stability.

Our full analysis on IBM stock

After a comprehensive review of IBM’s most recent financial results and an in-depth examination of its stock performance across the last three years, our proprietary analytical models—integrating fundamental indicators, technical signals, sector trends, and peer benchmarks—help illuminate the strategic evolution underway at Big Blue. The data reveals encouraging momentum bolstered by robust fundamentals and strong market positioning within the ever-evolving technology sector. So, why might IBM stock once again become a strategic entry point into the global digital transformation narrative in 2025?

Recent Performance and Market Context

IBM has delivered impressive year-to-date (YTD) appreciation, with its share price advancing approximately 17.65% as of May 27, 2025, situating the stock around $258.75 and propelling its market capitalization to $240.37 billion. This sustained outperformance has been shaped by a combination of resilient quarterly earnings and strategic repositioning toward high-growth verticals, notably hybrid cloud and artificial intelligence (AI). Particularly compelling for investors in the Philippines is IBM’s disciplined execution, enabling the company to withstand global economic fluctuations and capitalize on technological tailwinds, such as the sector-wide acceleration in enterprise digitalization.

Positive developments underpinning IBM’s recent strength include:

• Earnings Beat: The Q1 2025 results surpassed analyst expectations, posting adjusted EPS of $1.60 against a projected $1.40—a clear signal to the market of both efficiency and resilient demand.
• Sector Leadership: IBM’s investments in hybrid cloud and AI, central to its transformation, address two of the fastest-growing technology sub-segments worldwide.
• Macro Backdrop: A favorable macroeconomic environment—characterized by corporate IT spending normalization and rapid AI adoption—supports ongoing demand for IBM’s solutions, particularly across ASEAN economies and global conglomerates operating in the Philippines.

With these drivers in place, IBM is well-positioned within a technology landscape that increasingly rewards scale, innovation, and dependable execution.

Technical Analysis

Technical patterns continue to signal a period of constructive strength for IBM. The 14-day Relative Strength Index (RSI) currently stands between 56.24 and 58.1, placing the stock comfortably in neutral territory—avoiding the risks typical of overbought scenarios, while leaving room for additional upward moves. The Moving Average Convergence Divergence (MACD) is positive, ranging from 0.31 to 5.88, reinforcing a bullish momentum signal.

Recent moving average crossovers between the 50-day and 100-day lines add credibility to the prevailing positive bias. Key support levels at $252.23, $255.42, and $261.05 serve as reassuring technical anchors, while resistance is marked at $269.87, $273.06, and $278.69—offering scope for further appreciation if bullish participation intensifies.

• Momentum and Trend: Recent price action, coupled with the ongoing MACD/RSI configuration, suggests IBM is consolidating within a high-basing structure, typically a precursor to renewed upward momentum.
• Medium-term Structure: With the stock trading above major medium-term moving averages and exhibiting dynamic support, current levels seem to represent an excellent opportunity for positioning ahead of the next bullish phase.

Fundamental Analysis

IBM’s transformation story is substantiated by steady financial progress and strategic clarity across all major business lines. For Q1 2025, revenue grew to $14.54 billion, up 0.6% year-over-year—an especially solid result given the scale and global reach of the enterprise. The company generated operating pre-tax income of $1.7 billion and EBITDA of $3 billion, reflecting healthy operational leverage and margin expansion.

The segment breakdown reveals exceptional momentum within the Software division—posting a sector-leading gross profit margin of 83.6% and earmarked as the fastest-growing segment. Consulting, another cornerstone of IBM’s growth narrative, contributed $9 billion in hybrid cloud revenue (23% YoY increase) and maintained a gross margin of 27.3%. Infrastructure, while still a key pillar, is now primarily oriented toward enabling enterprise AI workloads, stabilizing gross margins at 52.8%.

• Valuation: Despite a trailing price/earnings (P/E) ratio of 44.49, IBM’s forward P/E has compressed to a more attractive 23.17, signaling market confidence in future earnings growth. Price/sales (3.87) and price/book (9.02) ratios are within the upper range for technology leaders, yet arguably justified by the high-quality margin profile and repeatable revenue streams.
• Business Model Resilience: IBM’s leadership in hybrid cloud (annualized revenue over $22 billion, up 11% YoY) and AI integration strengthens its defensibility and value proposition relative to competitors.
• Brand and Market Share: The IBM brand, synonymous with trust and innovation, continues to command a loyal enterprise client base—enabling recurring revenues and a competitive moat as digital transformation deepens globally.

For Philippine investors with a focus on innovative, cash-generative US technology leaders, IBM’s fundamentals justify renewed interest, especially at current multi-year technical levels.

Volume and Liquidity

Trading volumes around IBM remain robust, supporting the company’s status as one of the most liquid blue chips on the NYSE. Sustained liquidity is itself indicative of enduring institutional confidence, bolstering price stability even amid broader market fluctuations.

• Market Confidence: Persistent trading activity at or above $258 validates institutional conviction and the emergence of long-term investors.
• Float Structure: IBM’s share float remains broad, enhancing price discovery and dynamic valuation, while the 2.60% dividend yield introduces a defensive buffer that is particularly attractive in volatile markets.

Catalysts and Positive Outlook

IBM’s outlook is punctuated by several visible drivers poised to unlock further shareholder value:

• Generative AI Acceleration: The rapid scale-up of enterprise generative AI projects—facilitated through IBM Consulting’s verticalized approach—positions IBM as an enabler of next-generation automation and analytics globally, including in the thriving BPO and IT segments of the Philippines.
• Hybrid Cloud Expansion: New partnerships, especially focused on regulated industries, drive product stickiness and large-scale cloud migrations, underpinning double-digit hybrid cloud revenue growth.
• ESG and Regulatory Alignment: Proactive response to evolving regulatory expectations fortifies IBM’s relevance among global clients, making it a preferred partner for compliance-driven digitalization.
• R&D and Innovation: Continuous investment in software, infrastructure, and specialized consulting ensures IBM remains at the forefront of mission-critical enterprise technology.
• Favorable Sector Dynamics: Ongoing global digital transformation, particularly in Southeast Asia, continues to catalyze IT spending in hybrid cloud and AI—sectors where IBM’s leadership is undisputed.

These factors may collectively set the stage for IBM to enter a new bullish phase, with positive read-throughs for both margin expansion and valuation multiples.

Investment Strategies

IBM’s current setup presents robust arguments for entry across multiple investment horizons:

• Short-Term: Attractive for swing traders seeking upside on the back of technical momentum, as the stock consolidates above established support levels; a break above $270 could represent a technical trigger for further gains.
• Medium-Term: For investors targeting thematic exposure to generative AI and cloud, IBM provides diversified, high-margin participation, with potential catalysts from upcoming product launches or industry partnerships expected in the next two quarters.
• Long-Term: Strategic positioning by accumulating shares at or near current levels—before further hybrid cloud and AI adoption accelerates—could unlock outsized value, compounded by the stability of a 2.60% dividend yield.

Ideal positioning would combine technical entry near identified support levels, or in anticipation of material corporate announcements, allowing investors to participate in both potential appreciation and reliable income streams.

Is It the Right Time to Buy IBM?

The aggregation of IBM’s strengths—resilient segment-level margins, expanding hybrid cloud and AI revenues, tightly aligned management strategy, and a compelling mix of growth plus income—constructs a persuasive narrative for renewed investor focus. The fundamentals suggest that IBM may now be transitioning from a defensive asset into a core engine of innovation-led growth, at a time when the global race for digital transformation is accelerating.

With robust technical underpinnings, consistent liquidity, and sector tailwinds, IBM stock seems to represent an excellent opportunity for investors seeking to gain exposure to the intersection of cloud, AI, and enterprise IT transformation. For Philippine investors seeking blue-chip reliability combined with innovation-driven upside, the window may well be opening for strategic entry into a stock that is increasingly aligned with the technological future of global enterprise.

Investors who recognize IBM’s compelling blend of stability, innovation, and market leadership may find its current setup offers a rare and timely opportunity for capturing medium- to long-term growth in technology’s most dynamic sectors.

How to buy IBM stock in the PH?

Buying IBM stock online is now both simple and secure for investors in the Philippines, thanks to regulated international brokers. You have two main options to access IBM shares: spot buying (direct ownership of shares) and CFD trading (speculating on price movements without owning the shares). Each method has its own advantages and is suited to different investing goals, which we will explain below. To make the process even smoother, we’ve prepared a comparison of leading brokers and their fees further down this page.

Spot buying

A spot, or cash, purchase means that you directly buy IBM shares, becoming a shareholder entitled to dividends and voting rights. Most regulated brokers offer a user-friendly platform for cash purchases, usually charging a fixed commission per trade. For PH investors, some brokers convert USD-denominated stocks to PHP, but commissions typically remain in the $5–$10 range per order.

Example

If the IBM share price is $258.75 and you want to invest $1,000 (around ₱57,500 at ₱57.5/USD), you can buy approximately 3 shares, factoring in a $5 commission (about ₱288). Your total cost would be around $781 (for 3 shares) plus $5 commission, giving you slight residual cash.

Gain scenario: If the IBM share price rises by 10% to $284.62, your 3 shares would be worth $853.86. That is a +$77.86 gross gain (+10%), on your $778 initial investment (excluding commissions and exchange rate changes).

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on IBM’s price movement without actually owning the stock. CFD trading is popular for its flexibility, offering features like leverage (borrowing to increase exposure) and the ability to go long or short. Instead of a fixed commission, you generally pay the broker via the “spread” (the difference between buying and selling price), and an additional overnight financing cost if you hold positions for multiple days.

Example

Suppose you open a CFD position on IBM with $1,000 (₱57,500) and use 5x leverage, so your market exposure is $5,000.

Gain scenario: If the IBM stock rises by 8%, your position will make an 8% × 5 = 40% profit before fees. That’s a $400 gain (₱23,000+) on your $1,000 bet, minus spreads and any overnight charges applied by your broker.

Final advice

Before investing, it’s essential to carefully compare brokers’ fees, commissions, currency conversion rates, and available features. The right method depends on your financial objectives: choose cash buying for long-term ownership and dividend collection, or CFDs for short-term, flexible trading. For your convenience, a detailed broker comparison is available below to help you make an informed choice. Happy investing!

Our 7 tips for buying IBM stock

The latest news about IBM

IBM’s hybrid cloud and AI partnerships gain traction in the Philippines and broader ASEAN region this week. In the last seven days, IBM has reaffirmed its commitment to the Philippine market through ongoing collaborations with local enterprises and financial institutions, supporting their digital transformation journeys with hybrid cloud and AI-driven solutions. Confirmed by official company statements, IBM Consulting’s ecosystem partners—many of which operate in banking, retail, and government—are leveraging IBM’s technology to enhance operational efficiency and customer service. Notably, recent projects with Philippine-based banks and the public sector focus on secure cloud adoption and generative AI applications, aligning with national digitalization goals and creating a foundation for potential future revenue growth in the region.

IBM’s dividend policy remains stable and attractive, supporting investor confidence, particularly among income-focused Philippine investors. IBM paid its latest quarterly dividend of $1.68 per share following its ex-dividend date of May 9, 2025, keeping its annualized yield at a robust 2.6%. The company’s long tradition of consistent dividend payments—supported by solid operating cash flows—remains acknowledged by financial analysts as a sign of reliability in the current macroeconomic environment. For institutional and retail investors in the Philippines who prioritize stable income streams, IBM’s dividend profile continues to stand out amidst global uncertainty and regional currency headwinds, further enhancing its perceived value as a long-term core holding.

Strong Q1 2025 results underscore IBM’s earnings stability, with software and consulting segments posting notable gains in Asia-Pacific. IBM’s latest earnings report, released on April 23, revealed revenue growth of 0.6% year-over-year, highlighted by adjusted earnings per share of $1.60 (versus a forecasted $1.40). Company disclosures specify that Asia-Pacific—headed by momentum in ASEAN markets including the Philippines—contributed to double-digit growth in consulting bookings. Regional clients, especially within the financial services and government sectors, are rapidly adopting hybrid cloud and AI platforms, driving IBM’s profitability and reinforcing its market leadership in IT services. These performance metrics support positive analyst outlooks for IBM’s local and regional operations.

IBM expands cloud infrastructure in Southeast Asia, improving latency and compliance for Philippine-based customers. IBM has announced additional capacity and regulatory-compliant services through its cloud data center ecosystem in Southeast Asia, directly benefiting Philippine organizations subject to data residency and cybersecurity requirements. These enhancements enable enterprises, BPOs, and government agencies in the country to deploy mission-critical workloads closer to end users, reducing latency and aligning with local regulatory frameworks such as the Philippine Data Privacy Act. The move reaffirms IBM’s commitment to regional infrastructure investment, strengthening customer relationships and supporting future contract wins.

Technical market indicators signal neutral-to-bullish momentum for IBM, providing reassurance to regional investors. Over the past week, IBM’s technical picture has remained solid: the 14-day RSI hovers in the mid- to upper-50s, and the MACD continues to print positive values, reflecting sustained upward momentum. Notably, the stock is trading near key support levels ($255.42–$261.05) with resistance at $269.87, suggesting a stable price floor. These signals are being monitored by Philippine investors and regional analyst desks, who view them as indicative of reduced downside risk and a constructive near-term outlook, especially considering the company’s low beta and defensive characteristics as a global technology blue-chip.

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.