Jim Cramer Reveals Why International Business Machines (IBM) Should Be Doing Better

We recently published Jim Cramer Discussed These 10 Stocks Including A Hidden Gem & An AI Short. International Business Machines Corporation (NYSE:IBM) is one of the stocks discussed by Jim Cramer.

International Business Machines Corporation (NYSE:IBM)’s shares have struggled recently as they are down by 1.9% over the past year and by 12.9% year-to-date. RBC Capital discussed the firm on May 7th as it cut the share price target to $300 from $330 and kept an Outperform rating. The bank remarked that its coverage came after International Business Machines Corporation (NYSE:IBM)’s IBM Think conference and added that its coverage reflected a compression in peer valuation multiples. The software and enterprise computing firm is one of Cramer’s top stocks. Throughout 2025, the CNBC TV host praised International Business Machines Corporation (NYSE:IBM) for its software business and its quantum computing efforts. So, naturally, he isn’t pleased with the recent share price performance:

“IBM is I think overdone because of the downside. people feel it doesn’t have the right, its quantum is not big enough to offset the software it has. You don’t need the consultants, because the stuff’s so easy. You know that. It’s the rap, that’s the Anthropic rap.”

Jim Cramer Reveals Why International Business Machines (IBM) Should Be Doing Better

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 the cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

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