Amid trade tensions, the U.S. has become a magnet for corporate investment, with both domestic and international giants rallying behind President Donald Trump’s push to bring manufacturing back home. Tech heavyweights like Apple (AAPL) and Nvidia (NVDA) are already pouring billions into U.S. operations, and now joining this reshoring wave is information technology and consulting giant International Business Machines (IBM), also known as IBM. 

On April 28, IBM shares shot up nearly 1.6% after the company announced a bold $150 billion investment in the U.S. over the next five years. At the core of this plan is over $30 billion dedicated to research and development, aimed at advancing the production of cutting-edge mainframes and quantum computers. A major beneficiary of this capital injection is IBM’s Poughkeepsie, New York facility, an essential hub that produces advanced mainframes responsible for processing more than 70% of the world’s transaction value. 

Beyond mainframes, IBM is doubling down on the future. With the world’s largest fleet of quantum computing systems under its belt, the company is positioning itself at the forefront of next-gen innovation. So, as this sweeping investment strategy takes shape, should investors buy, sell, or hold IBM stock now? 

About IBM Stock

For over a century, International Business Machines (IBM) has been in charge of technological innovation, pioneering the future from the earliest days of computing to today’s artificial intelligence (AI)-driven world. With a powerful blend of intelligence, science, and innovation, IBM continues to transform business, society, and everyday life. The New York-based company’s vast portfolio spans consulting, software, infrastructure, and Finance. 

Valued at approximately $222.5 billion by market cap, IBM is emerging as a quiet powerhouse in a turbulent 2025 market. While the S&P 500 Index ($SPX) has stumbled with a 6% year-to-date drop, IBM has defied the broader trend, rising nearly 10%. Over the longer term, the stock is up a remarkable 45% in the last 52 weeks, vastly outperforming the broader market’s modest 9.8% climb during the same stretch. 

Apart from its solid price performance, IBM continues to impress with its shareholder-friendly track record. Since 1916, the company has consistently paid quarterly dividends. And with a remarkable 30 consecutive years of dividend increases under its belt, the company proudly holds the coveted Dividend Aristocrat status. 

Most recently, on April 29, IBM declared a quarterly dividend of $1.68 per share, scheduled for distribution on June 10. That brings its forward annualized payout to $6.68 per share, translating to a healthy 2.78% yield. In just the first quarter alone, IBM returned $1.5 billion to shareholders through dividends, underscoring its unwavering commitment to delivering long-term value.

Digging Into IBM’s Q1 Performance 

IBM’s first-quarter earnings results, published on April 23, revealed a somewhat mixed performance, triggering a sharp 6.6% selloff in the very next trading session. Total revenue held steady at $14.5 billion, showing little change from the prior year, yet still edged past Wall Street’s expectations by 1.1%. On the profit front, adjusted EPS dipped 4.8% year over year to $1.60, yet the company comfortably beat earnings forecasts by a 12.7% margin. 

Software stood out as the bright spot, with revenue climbing 7% annually to $6.3 billion. Within that, the hybrid cloud segment, including Red Hat, continued to gain traction, rising 12%, though slightly slower than the 16% growth seen in the previous quarter. 

On the flip side, IBM’s consulting business generated $5.1 billion in revenue, marking a modest 2% dip as client spending showed signs of caution. Meanwhile, the infrastructure segment, which houses the company’s mainframe systems, saw revenue fall 6% year-over-year to $2.9 billion. CEO Arvind Krishna struck an optimistic tone while commenting on the company’s Q1 results, highlighting outperformance across key metrics. 

The CEO noted that revenue, profitability, and free cash flow all topped management expectations, fueled largely by strong momentum in the Software segment. Plus, demand for generative AI remains robust, with IBM’s total AI-related business now exceeding $6 billion, growing by more than $1 billion in just the last quarter. Looking forward to fiscal 2025, management reaffirmed its expectation for $13.5 billion in free cash flow and at least 5% revenue growth at constant currency.

What Do Analysts Expect for IBM Stock?

Despite a lukewarm Q1 showing, Wall Street isn’t backing down on IBM stock, sticking to a consensus “Moderate Buy” rating overall. Of the 20 analysts offering recommendations, seven advocate a “Strong Buy,” one gives a “Moderate Buy,” 10 advise a “Hold,” and the remaining two suggest a “Strong Sell.” The average analyst price target of $250 represents potential upside of roughly 4%, while the Street-high target of $300 suggests a 25% rally from current levels.