How to Trade IBM After New Software Deal & AI Plans

June 26, 2023 21:45

Over the past several years, IBM has been trying to remake itself under the guidance of new CEO Arvind Krishna. This remake has included new mergers and acquisitions and a focus on artificial intelligence (AI) - something it has been doing since 1997 when IBM’s supercomputer Deep Blue defeated the world chess champion, Garry Kasparov.  

Learn more about IBM’s plans and what analysts are forecasting for the stock below.

Stock: International Business Machines Corp
Symbol for Invest.MT5 Account: IBM
Date of Idea: 26 June 2023
Time Line: 1 - 6 months
Entry Level: $140.00
Target Level: $162.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

IBM's New Software Deal & AI Plans

IBM is nearing a $5 billion deal to take over IT budgeting and forecasting software company Apptio. The deal for Apptio – which was taken private in 2018 by private equity company Vista Equity Partners - was first announced by the Wall Street Journal

Apptio’s cloud-based business management software delivers financial and operational insights to support businesses in making more informed decisions regarding finances. If the deal is signed, it will complete a run of acquisitions that have included a $1.5 billion acquisition of Turbonomic in 2021 and a $34 billion acquisition of Red Hat in 2019.  

The deal is seen as another step in IBM’s plans to move into artificial intelligence (AI). It already has a suite of AI tools such as, and Watson.governance. These AI programs help IBM’s customers to create new data models, store that data and make sure information is accurate and accountable.  

IBM has also expanded its partnership with Adobe to create content using generative artificial intelligence. While IBM has been involved in AI for the past four decades and is now refocusing more of its efforts in this field, the stock price has been struggling compared to other AI stocks.  

For example, shares in another AI stock Nvidia were up more than 170% this year so far largely thanks to the chips it creates for AI applications. IBM stock is currently down around 8% this year so far.  

The issue for investors is that other AI stocks have stated how much revenue they are making from their AI products. IBM has not and the CEO stated that it is impossible to compute as everything is going to have AI inside it over the next five years. However, he did say that IBM could grow in the mid-single digits from AI but this may not be enough for investors to get fully behind the stock which may be a reason why more analysts are on hold on the stock as shown below.  

IBM Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for a IBM stock forecast in the past 3 months, there are currently 4 buy, 5 hold and 0 sell ratings on the stock. The highest price level for an IBM stock forecast is $162.00 with the lowest price target at $135.00. 

The average price target for an IBM stock forecast is $146.56.

Source: TipRanks, 26 June 2023


An Example Trading Idea for the IBM Stock Price

  • An example trading idea for the IBM share price could be as follows:  
  • Buy the stock on a break above $140.00 to allow for volatility. 
  • Target just below the highest analyst price target of $162.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 IBM shares:  
    • If target is reached = $220.00 potential profit [($162.00 - $140.000) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering how the stock price is currently down on the year so far.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in IBM stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! 

How to Buy IBM Stock in 4 Steps  

With Admirals, you can buy shares in companies like IBM with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the dashboard.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for your stock in the search window at the top right to view the live price chart. 
  4. Click Create New Order from the bottom of the screen to open the trading ticket. 
Source: Admirals MetaTrader 5. IBM. Monthly. Date: 1 Aug 2009 to 26 June 2023, captured on 26 June 2023. Past performance is not a reliable indicator of future results or future performance.


Click on the banner below to trade IBM stock today! ▼▼▼ 

Do You See the IBM Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.  

If you believe there is a higher chance IBM's share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.  

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.  

This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this How to Trade CFDs article. 


The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:   

  • This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.    
  • Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. 
  • With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest. 
  • The Analysis is prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereinafter “Author”) based on their personal estimations.    
  • Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.    
  • Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed. 
  • Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved. 
Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.