IBM Stock Downgraded to $310 Target — But Bank of America Still Says Buy

International Business Machines Corporation (NYSE:IBM) is one of the AI Stocks Making Waves on Wall StreetOn July 24, Bank of America reiterated the stock as “Buy” and lowered the firm’s price target on IBM (IBM) to $310 from $320 following a “mixed quarter.”

The bank said that IBM is well-positioned for growth following its most recent financial report. The company reported adjusted earnings per share of $2.80 for the quarter, beating the LSEG estimate of $2.64. Meanwhile, revenue came in at $16.98 billion, ahead of the expected $16.59 billion.

“IBM reported a mixed quarter, where organic software deceleration was offset by strong contribution from better-than-expected Infrastructure results and higher M & A contribution.”

IBM Stock Downgraded to $310 Target — But Bank of America Still Says Buy

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The firm believes that, post-earnings, IBM has turned into a ‘show me’ story on software in the second half of the year, but remains bullish on the overall company trajectory. The analysts further stated that they believe estimates will move higher this year and next year, “with increasing contribution from high-margin software.”

International Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products.

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.

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