IBM Shares Jumped 5% After JPMorgan Upgraded the Stock on Software Acceleration. Here Is What IBM Stock Needs to Sustain the Momentum. Ebube Jones Wed, June 24, 2026 at 2:13 PM PDT 5 min read IBM ^NDX SNDK MU 005930.KS The tech sector took a hit on June 22, 2026. The Nasdaq 100 ($IUXX) dropped 3.29%, while the iShares Semiconductor ETF (SOXX) fell 7.88%. In Asia, South Korea's Kospi slid over 10% as foreign investors pulled more than $2.5 billion from chip stocks. Sandisk (SNDK) lost 13.64%, Micron Technology (MU) lost 13.18%, while Samsung Electronics dropped more than 12%. The sell-off started in Asia and spread globally as investors began questioning whether heavy AI spending can really support current chip valuations. But while chip stocks were falling, International Business Machines (IBM) moved the other way. The stock jumped 5.3% in midday training to lead the Dow Jones industrials after JPMorgan upgraded it to "Overweight" from "Neutral" and raised its price target to $291. The firm pointed to stronger confidence in software growth going into the second half of 2026, noting that software makes up about 45% of revenue but drives roughly two-thirds of total profit. More News from Barchart Palantir Stock Crashes to a 52-Week Low: Why It's Time to Buy the Dip. Corning Stock Skyrockets on AI-Related Demand, Spurring Unusual Call Option Buying Nasdaq Futures Gain After Brutal Tech Selloff, Micron Earnings in Focus Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Software is already doing most of the heavy lifting, yet IBM still trades below many software-focused peers. If one upgrade can move the stock like this in a weak market, what happens next if the company keeps delivering or if expectations start to slip? Inside the Latest Numbers IBM has been shifting its business toward software, hybrid cloud, and consulting, with Red Hat and its automation tools playing a big role in that transition. But the stock hasn't fully reflected that shift yet. Shares are down 10.49% over the past 12 months and off 11.23% year-to-date (YTD). www.barchart.com That shows up in valuation, too. International Business Machines trades at a forward price-to-earnings of 20.37 times, below the sector average of 23.44 times, suggesting the market is still not fully convinced about its growth path. At the same time, it offers a 2.67% dividend yield, well above the tech sector average of 1.37%, backed by 31 straight years of dividend increases. The most recent payout was $1.690 on May 8, 2026, with a forward payout ratio of 55.60% and quarterly payments. Looking at the latest results, execution has been steady. Q1 2026 revenue came in at $15.92 billion, ahead of the $15.71 billion estimate and up 9.5% year-over-year (YOY). Software brought in $7.05 billion, slightly beating expectations and continuing to lead the business. Story Continues Adjusted EPS was $1.91 versus $1.81 expected, while EBITDA reached $4 billion, above the $3.54 billion estimate, with a...
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