TL;DRIBM stock surged 10% after Barclays initiated coverage with an overweight rating and $350 target, arguing that IBM’s infrastructure software is the “good part” of enterprise software immune to AI disruption. The gains extend a 30% May rally driven by a $10 billion quantum computing commitment and Trump administration funding.
IBM stock surged 10% on Monday after Barclays initiated coverage with an overweight rating and a $350 price target, roughly 11% above the opening price. The jump extends a run that has seen IBM gain nearly 30% in May alone, its best monthly performance in almost 24 years. The stock is now up 10% year to date, erasing losses from the SaaSpocalypse selloff that hit software stocks earlier in the year.
Barclays’ bull case is not primarily about quantum computing, though that features prominently. The core thesis centres on IBM’s infrastructure software portfolio, which serves large, heavily regulated enterprises and generates the majority of the company’s profit. In a market where vibe coding and AI agents are threatening horizontal SaaS companies, Barclays argues that IBM’s type of software, deeply embedded infrastructure tools, is precisely the category least vulnerable to disruption.
