JPMorgan Chase has adjusted its price target for International Business Machines Corporation (IBM) to $283, down from $317, while maintaining a neutral rating on the stock.
The update, published in the March 18, 2026 report, reflects a more cautious outlook on the stock, as compared to the earlier optimism based on IBM’s strategic advancements in AI and quantum computing.
Selloff Post Anthropic’s Blog Post
The International Business Machines Corporation (IBM), an American multinational technology company, is one of the world’s leading computer service providers.
However, the macro uncertainty observed in the broader market, along with concerns regarding AI disruption in IBM’s legacy systems, has resulted in a more cautious approach to IBM’s stock. A recent blog post by Anthropic stated that its Claude Code tool could automate the exploration and analysis tasks of COBOL modernisation, removing the years of manual effort by IBM consultants usually required for the procedure.
Anthropic’s statement caused a sharp selloff in IBM, reducing billions in market value.
However, IBM’s focus on hybrid cloud and quantum computing positions, with the integration of Quantum Processing Units (QPUs) with classical CPUs and GPUs, through its data centers or via cloud, positions it as a strong competitor in the field of cloud computing and AI.
With the company recently completing its $11 billion acquisition of Confluent, a real-time data streaming platform, IBM’s AI and data infrastructure strategy will be further enhanced, promoting a long-term bullish narrative.
IBM: Current Market Scenario
As of March 18, 2026, IBM is currently trading at $256.11, observing a 2.75% rise over the past 24 hours. However, the stock faces pressure as it is trading below its 50-day and 200-day moving averages, and is down significantly from its 52-week high of $324.90.
IBM is projected to report an EPS of $1.78 for the upcoming quarter, representing an 11.25% increase from the previous year.
Analysing Recent Industry Sentiment
JPMorgan Chase’s downgrade of the price target follows closely with other industry giants such as Morgan Stanley, Bank of America, and Evercore. While Morgan Stanley had previously cut its price target of $247, as a result of limited near-term catalysts identified, Bank of America and Evercore remain more optimistic about stock growth, with targets as high as $335 and $345, respectively.
However, JPMorgan’s downgrade of the initial price target signals a lack of institutional conviction in the near-term upside potential of IBM, which could significantly affect investor sentiment. The price downgrade, even in the face of IBM’s recent unveiling of the world’s first reference architecture for quantum-centric supercomputing and projects for quantum-based developments, suggests investor caution in the highly volatile field of quantum computing and AI.
Should You Buy IBM?
IBM expects to have a leverage over classical computing through its advancements in quantum technology, by late 2026, with the recent reveal of its quantum architecture introducing QPU-integrated hybrid models.
For investors, this provides a bullish narrative that signals possible upside momentum in the near-term. Investors are advised to navigate the highly volatile AI market with caution.
