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Jim Cramer Believes International Business Machines (IBM) Is Undervalued

We recently published 11 Stocks on Jim Cramer’s Radar.  International Business Machines Corporation (NYSE:IBM) is one of the stocks on Jim Cramer’s radar.

International Business Machines Corporation (NYSE:IBM) is one of the largest enterprise computing hardware and software providers in the world. The firm’s shares are up by 19.9% over the past year and by 5.2% year-to-date. Bernstein raised International Business Machines Corporation (NYSE:IBM)’s share price target to $330 from $280 and kept a Market Perform rating on the shares on Friday. The financial firm pointed out that the technology company might face headwinds from devaluation related to AI. Bernstein added that International Business Machines Corporation (NYSE:IBM)’s strength in the quantum computing business might already be reflected in the firm’s stock price. Cramer has also discussed the quantum computing business several times. The CNBC TV host has gone as far as to suggest that International Business Machines Corporation (NYSE:IBM), along with Google, is the only quantum computing stock that is worth buying. Naturally, he continued to lavish praise on the quantum business in this episode:

Source:unsplash

“Well you know that Arvind Krishna actually has quantum. And it’s actually being used. His stock is still undervalued. I think he is a great man who has taken a company that people think was left behind. They don’t look at what IBM does. There are still a lot of companies, the so called on premises, the big banks, and they’re using IBM. I just can’t say enough about what he’s doing. If he could get his way and quantum would come everywhere, we would be able to make it so that maybe we wouldn’t have to use that much energy, we wouldn’t be building, we wouldn’t be doing the Microsoft trade at Three Mile Island.”

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: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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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?

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  • 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.

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