International Business Machines (NYSE: IBM) is traded at $229.32 as of February 24, 2026, while the average analyst price target sits at $324.95.
Wedbush analysts say the recent selloff of International Business Machines Corp (NYSE:IBM) shares is overdone and presents a buying opportunity, arguing that fears around AI-driven disruption to the company's legacy business are being misinterpreted. IBM stock fell 13% on Monday, its largest drop in more than 25 years, compared with about a 1% decline for the S&P 500.
On the heels of IBM's sharpest daily decline in a quarter-century, analysts cheered the resilience of the company's mainframe business.
International Business Machines Corporation is now rated a Buy as the recent AI-driven selloff has created a compelling valuation opportunity. Despite AI disruption fears, IBM's Software and Infrastructure segments showed strong Q4 growth, with free cash flow up 9% YoY to $19.7 billion. Forward EPS is projected to grow over 7% in FY 2026, and IBM stock appears 15-20% undervalued with a technical support zone near $200.
IBM (IBM) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
IBM stock has dropped by 28.6% in under a month, going from $312.95 on 2nd Feb, 2026 to $223.35 currently. The sharp decline was primarily triggered by a disappointing quarterly earnings report that highlighted slowing growth in its hybrid cloud and AI consulting segments, missing analyst expectations.
AI fears rattled markets as IBM sank and tech slid, but ETFs like OIH, BWET, IDNA and HDGE stayed resilient, gaining even as major indexes fell.
International Business Machines (NYSE: IBM) has been under severe pressure in February, with the month being on track to become the firm's worst in more than 50 years.
Artificial-intelligence start-up Anthropic had plenty to do with the sharp tech selloff. It has more updates coming Tuesday.
IBM recently experienced its largest single-day decline in over 25 years – a 13.15% drop to $223.35 on February 23, 2026. So far this month, the stock has plunged 27%, on track for its worst month since 1992.
International Business Machines' stock is the latest big software loser that can trace its selloff to fears over new artificial-intelligence features.
$31 billion. That's about how much was cut from IBM's market value after its shares declined on Monday, falling from $240.8 billion on Friday to roughly $208.7 billion.