{"id":202630,"date":"2025-10-05T02:34:12","date_gmt":"2025-10-05T02:34:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/202630\/"},"modified":"2025-10-05T02:34:12","modified_gmt":"2025-10-05T02:34:12","slug":"why-ibm-stock-soared-16-in-september-3","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/202630\/","title":{"rendered":"Why IBM Stock Soared 16% in September"},"content":{"rendered":"<p>Key Points<\/p>\n<p>A tailwind from the artificial intelligence (AI) boom, along with an apparent breakthrough in <a href=\"https:\/\/www.fool.com\/terms\/q\/quantum-computing\/?utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=c114d53e-fb89-4b39-818e-c6b76852ed33\" target=\"_blank\" rel=\"noopener nofollow\">quantum computing<\/a>, helped push IBM (NYSE: IBM) stock back to near-record levels in September. IBM stock gained 15.9% last month, according to data provided by <a href=\"http:\/\/marketintelligence.spglobal.com\/\" target=\"_blank\" rel=\"noopener nofollow\">S&amp;P Global Market Intelligence<\/a>, largely erasing the losses suffered over the summer.<\/p>\n<p><img decoding=\"async\" fetchpriority=\"high\" alt=\"A folder labeled quantum computing in a series of folders. \" src=\"https:\/\/barchart-news-media-prod.aws.barchart.com\/FC\/0c054c5bbe0d56127d64495d9d4e2f9e\/%3Furl%3Dhttps%253a%252f%252fg.foolcdn.com%252feditorial%252fimages%252f836115%252fgettyimages-2179167623.jpg%26amp%3Bw%3D700\"\/><\/p>\n<p class=\"caption\">Image source: Getty Images.<\/p>\n<p>Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. <a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=ef261e9e-2494-49dc-8b30-192d15e983c4&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001096%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Dtop_incontent_pitch_feed_partner%26ftm_pit%3D17547&amp;utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=c114d53e-fb89-4b39-818e-c6b76852ed33\" rel=\"noopener nofollow\" target=\"_blank\">Continue \u00bb<\/a><\/p>\n<p>AI and quantum computing<\/p>\n<p>IBM&#8217;s AI business doesn&#8217;t generate a lot of headlines, but the company has quietly become a powerhouse in the industry by focusing on enterprise solutions. IBM has booked more than $7.5 billion worth of <a href=\"https:\/\/www.fool.com\/terms\/g\/generative-ai\/?utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=c114d53e-fb89-4b39-818e-c6b76852ed33\" target=\"_blank\" rel=\"noopener nofollow\">generative AI<\/a> business so far. The combination of consulting and software, as well as various <a href=\"https:\/\/www.fool.com\/investing\/2023\/12\/13\/ibm-has-a-secret-weapon-thats-bringing-in-billions\/?utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=c114d53e-fb89-4b39-818e-c6b76852ed33\" target=\"_blank\" rel=\"noopener nofollow\">strategic partnerships with other technology companies<\/a>, allows IBM to offer complete AI solutions that include integration and implementation services, and that use the third-party cloud platforms that enterprise clients have already embraced.<\/p>\n<p>While there hasn&#8217;t been any meaningful news coming out of IBM&#8217;s AI business over the past month, the AI industry has seen a frenzy of major developments. OpenAI and Oracle struck an enormous AI computing deal, Nvidia announced a $100 billion investment in OpenAI, and the Stargate project signed agreements with memory chip manufacturers to supply gargantuan quantities of chips. For IBM, a rising tide lifts all AI boats.<\/p>\n<p>Outside of AI, IBM and HSBC announced a <a href=\"https:\/\/www.fool.com\/investing\/2025\/09\/26\/ibm-just-made-a-quantum-computing-breakthrough\/?utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=c114d53e-fb89-4b39-818e-c6b76852ed33\" target=\"_blank\" rel=\"noopener nofollow\">significant breakthrough in the field of quantum computing<\/a> in September. HSBC used IBM&#8217;s quantum computers to demonstrate a meaningful improvement over classical computers for a specific computational problem related to bond trading. Quantum computing was paired with classical techniques to deliver a 34% improvement in predicting how likely a trade in the over-the-counter European bond market would be filled at a quoted price.<\/p>\n<p>While large-scale, fault-tolerant quantum computers are still years away, IBM is making progress applying the technology to real-world use cases. IBM has already generated around $1 billion in bookings related to quantum computing, but the quantum computing industry could reach $198 billion by 2040, according to estimates from McKinsey.<\/p>\n<p>Accelerating growth<\/p>\n<p>IBM&#8217;s AI business is one reason why the company&#8217;s revenue growth is set to accelerate this year. IBM expects revenue adjusted for currency to grow by at least 5% in 2025. While this may not seem impressive, it&#8217;s important to remember that IBM is a sprawling company with a mix of legacy businesses and faster-growing businesses.<\/p>\n<p>Another factor: Demand for discretionary tech projects is weak, given the state of the economy, which is offsetting some of the company&#8217;s AI and cloud-driven growth.<\/p>\n<p>AI should continue to drive IBM&#8217;s revenue higher even if the hype around the technology starts to fizzle out. Since IBM focuses on enterprise AI solutions that cut costs or boost efficiency, often with <a href=\"https:\/\/www.fool.com\/investing\/2024\/10\/22\/ibm-thinks-small-to-win-enterprise-ai\/?utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=c114d53e-fb89-4b39-818e-c6b76852ed33\" target=\"_blank\" rel=\"noopener nofollow\">small, specialized AI models<\/a>, the company isn&#8217;t dependent on frontier models improving dramatically. Beyond the next few years, quantum computing can start to have an impact as IBM pushes forward on its quantum roadmap.<\/p>\n<p>With IBM expecting to generate at least $13.5 billion in free cash flow this year, the stock trades at a price-to-free cash flow ratio of about 20. While that&#8217;s certainly not bargain territory, the company&#8217;s long-term opportunities in AI and quantum computing justify the valuation.<\/p>\n<p>Should you invest $1,000 in International Business Machines right now?<\/p>\n<p>Before you buy stock in International Business Machines, consider this:<\/p>\n<p>The Motley Fool Stock Advisor analyst team just identified what they believe are the <a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=f3030846-eab4-484a-96d7-40b8ca4acca3&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001093%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D17514&amp;utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=c114d53e-fb89-4b39-818e-c6b76852ed33\" rel=\"noopener nofollow\" target=\"_blank\">10 best stocks<\/a> for investors to buy now\u2026 and International Business Machines wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n<p>Consider when Netflix made this list on December 17, 2004&#8230; if you invested $1,000 at the time of our recommendation, you\u2019d have $626,942!* Or when Nvidia made this list on April 15, 2005&#8230; if you invested $1,000 at the time of our recommendation, you\u2019d have $1,157,870!*<\/p>\n<p>Now, it\u2019s worth noting Stock Advisor\u2019s total average return is 1,063% \u2014 a market-crushing outperformance compared to 191% for the S&amp;P 500. Don\u2019t miss out on the latest top 10 list, available when you join Stock Advisor.<\/p>\n<p><a class=\"ticker_pitch\" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=f3030846-eab4-484a-96d7-40b8ca4acca3&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001093%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D17514%26ftm_veh%3Darticle_pitch_feed_partners%26company%3DInternational%2520Business%2520Machines&amp;utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=c114d53e-fb89-4b39-818e-c6b76852ed33\" rel=\"noopener nofollow\" target=\"_blank\">See the 10 stocks \u00bb<\/a><\/p>\n<p>*Stock Advisor returns as of September 29, 2025<\/p>\n<p>HSBC Holdings is an advertising partner of Motley Fool Money. <a href=\"https:\/\/www.fool.com\/author\/2369\/\" target=\"_blank\" rel=\"noopener nofollow\">Timothy Green<\/a> has positions in International Business Machines. The Motley Fool has positions in and recommends International Business Machines, Nvidia, and Oracle. The Motley Fool recommends HSBC Holdings. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" target=\"_blank\" rel=\"noopener nofollow\">disclosure policy<\/a>.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"1\" height=\"1\" style=\"display:none;\" referrerpolicy=\"unsafe-url\" src=\"https:\/\/barchart-news-media-prod.aws.barchart.com\/FC\/0c054c5bbe0d56127d64495d9d4e2f9e\/pixel%3Fslug%3Dmotleyfoolgm-2025-10-4-why-ibm-stock-soared-16-in-september\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"Key Points A tailwind from the artificial intelligence (AI) boom, along with an apparent breakthrough in quantum computing,&hellip;\n","protected":false},"author":2,"featured_media":202272,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[191,2177,558,2174,2173,2176,2175,2178,21928,74,2180],"class_list":["post-202630","post","type-post","status-publish","format-standard","has-post-thumbnail","category-computing","tag-computing","tag-futures","tag-ibm","tag-index-market-quote","tag-index-market-quotes","tag-index-market-symbol","tag-index-market-symbols","tag-indices","tag-intl-business-machines","tag-technology","tag-the-globe-and-mail"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/202630","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=202630"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/202630\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/202272"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=202630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=202630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=202630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}