IBM (IBM.US) continues to rise, Barclays sees upside to $350.

Barclays initiates coverage on IBM (IBM.US) for the first time, giving it a "hold" rating with a target price of $350, citing one of the key reasons being the growth momentum of its software business. As of the time of writing, the stock has continued its uptrend from last week, rising over 6%. Barclays analyst Raimo Lenschow points out that IBM's core strength comes from its infrastructure software business tailored for regulated large enterprises, which has a highly sticky customer base. Currently, the software business accounts for about 50% of the company's revenue, and its business model has relatively low risk of being impacted by AI. In fact, since May 21, IBM's stock price has been on the rise. At that time, the company signed a letter of intent with the U.S. federal government to apply for $1 billion in incentives under the CHIPS Act to establish an independent quantum chip manufacturing company called Anderon. The company will operate what IBM calls the "first U.S.-only wafer foundry dedicated to quantum chip manufacturing". On Thursday, May 28, IBM's quantum business received another boost: the company announced that it will invest $10 billion over the next five years in the field of quantum computing, with $5 billion going towards open-source software projects related to artificial intelligence. Some media attributed IBM's jump in stock price on Monday to a video that circulated on social media over the weekend. In the video, U.S. President Donald Trump expressed appreciation to IBM's CEO Arvind Krishna during a White House business roundtable meeting on December 10, 2025.