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BMO Capital Lowers IBM Target but Highlights Stable Business Mix

International Business Machines Corporation (NYSE:IBM) is included among the 15 Dividend Stocks to Buy for Steady Income.

On March 19, BMO Capital lowered its price recommendation on International Business Machines Corporation (NYSE:IBM) to $290 from $350. It reiterated a Market Perform rating on the shares. The firm said it does not see enough upside to turn more constructive at this point. It still views IBM’s broad product portfolio, AI positioning, and quantum efforts as factors that help reduce volatility. BMO also noted that the lower price target reflects compression in Software and IT Services multiples.

On March 16, IBM announced at GTC 2026 an expanded collaboration with NVIDIA Corporation aimed at helping enterprises scale AI. The partnership focuses on GPU-native data analytics, intelligent document processing, on-premises and regulated infrastructure, cloud, and consulting. The goal is to give companies the tools and support needed to move AI from pilot programs into full production. Many enterprises are investing heavily in AI, yet progress often stalls before reaching scale. Data can be fragmented and hard to access. Infrastructure is not always built for advanced AI workloads.

There are also compliance and data residency requirements, especially in regulated industries. In some cases, companies still need guidance on how to deploy these systems effectively. IBM and NVIDIA are positioning this collaboration to address those gaps.

International Business Machines Corporation (NYSE:IBM) provides hybrid cloud, artificial intelligence, and consulting services. Its operations are organized into Software, Consulting, Infrastructure, and Financing segments.

While we acknowledge the risk and potential of IBM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IBM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading into 2026 and 14 Under-the-Radar High Dividend Stocks to Buy Now

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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