JPMorgan has upgraded IBM from Neutral to Overweight, establishing a new price target of $291. This upgrade reflects JPMorgan's renewed confidence in IBM, which has been revitalizing its focus on software, artificial intelligence, and digital asset infrastructure.
Historically, JPMorgan's view on IBM has fluctuated; the bank initially set a target of $312 in January 2026, reducing it to $283 after IBM's $11B acquisition of Confluent in March. The current target of $291 indicates a positive shift.
Key factors driving this upgrade include IBM's robust software division, contributing nearly half of its revenue. At the May 2026 Think conference, IBM introduced significant upgrades to watsonx, its enterprise AI platform, enhancing its capability for multi-agent orchestration, enabling AI models to collaborate on complex tasks.
Additionally, IBM's foray into digital assets has shown promise. The launch of Digital Asset Haven in October 2025 focuses on institutional clients with services spanning custody, token issuance, and operations across 40 blockchain networks. A March 2026 report anticipates tokenization to escalate in the banking sector, with stablecoin transactions already making up 7% of market activities. By 2030, tokenized assets are projected to be mainstream in banking.