IBM’s (IBM) role in corporate AI may be getting harder to displace. Indeed, investment firm Morgan Stanley (MS) said the main takeaway from IBM’s Think 2026 event is that the tech giant is trying to do more than simply help others use AI. Instead, IBM wants to become a full-stack operator that provides more of the software and infrastructure that’s needed to run AI, which could improve both its revenue mix and long-term margins.
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New trading tool for IBM bullsAs a result, although the firm kept a Hold rating on the stock with a $225 price target, analysts led by five-star-rated Erik Woodring said the event increased their confidence that IBM is building a more defensible role in enterprise AI. That confidence comes from IBM’s focus on areas where it already has strengths, such as hybrid infrastructure, data control, and secure AI deployment. For example, Morgan Stanley pointed to watsonx as a platform that can help manage AI agents across different businesses. In addition, IBM is building tools that connect real-time mainframe data and support GPU-powered analytics.
These capabilities could help IBM win more high-value contracts, especially from regulated industries where data privacy, compliance, and control are extremely important. Still, Morgan Stanley warned that IBM faces tough competition from larger cloud companies. Nevertheless, products like Sovereign Core and stronger security tools could help IBM stand out in areas where customers need strict data residency and compliance.
Is IBM a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on 11 Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $292.63 per share implies 29.2% upside potential.
