International Business Machines Corporation (IBM) "Is Down Too Much," Says Jim Cramer

We recently published 11 Latest AI & Other Stocks On Jim Cramer’s Radar. International Business Machines Corporation (NYSE:IBM) is one of the stocks Jim Cramer recently discussed.

International Business Machines Corporation (NYSE:IBM) is one of the largest enterprise computing companies in the world. It provides hardware and software to businesses and is also a key player in the quantum computing industry. Cramer’s previous comments about International Business Machines Corporation (NYSE:IBM) have praised the firm, particularly with regard to its lead in the quantum computing industry. The shares have gained 8.9% year-to-date but have lost 15.9% over the past month. International Business Machines Corporation (NYSE:IBM)’s shares have lost ground recently after its second quarter earnings saw software revenue miss analyst estimates. Cramer continues to believe that investors are punishing the firm a bit too hard, as he briefly remarked:

“IBM is down too much, by the way.”

The CNBC TV host discussed International Business Machines Corporation (NYSE:IBM) in detail after the quarterly results. Here is what he said:

“Okay, I didn’t think IBM’s quarter… was all that bad at all. I think you have a major opportunity down here because I think that we’re going to start talking about IBM and quantum. I think they have the lead in quantum, and I think quantum really does matter. They have a great software package. They’re doing so many things that are good.

Against that, let me tell you what’s really going on. The chart’s bad, and people are saying it’s a head and shoulders. Now, you and I both know there comes a time when you have to step in if the fundamentals are right, and I think we’re there, okay.”

While we acknowledge the potential of IBM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.