Why IBM (IBM) Stock Is Up Today

What Happened?

Shares of technology and consulting giant IBM (NYSE:IBM) jumped 5.6% in the morning session after the company, in partnership with HSBC, announced the world's first-known successful trial of quantum-enabled algorithmic trading. 

This collaboration showed that using IBM's quantum systems improved the prediction of bond trade outcomes by up to 34% compared to traditional computing methods. The trial focused on the European corporate bond market, where the technology helped to better price customer inquiries in a competitive bidding process. This milestone represented a significant development in finding practical uses for quantum computers to solve real-world financial problems. The news positioned IBM at the forefront of applying this advanced technology in the financial services industry. In separate news, IBM Japan also revealed a team-up with Fujitsu to advance innovation in AI and healthcare.

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What Is The Market Telling Us

IBM’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 2 months ago when the stock dropped 7.8% on the news that the company's second-quarter earnings report revealed that revenue from its software division missed analyst expectations, overshadowing an otherwise strong quarter. 

The technology giant surpassed Wall Street's forecasts for both overall revenue and profit. However, the underperformance in the crucial software segment raised concerns among investors about the growth trajectory for its key artificial intelligence (AI) and hybrid cloud businesses. 

Adding to the negative sentiment, CEO Arvind Krishna offered cautious commentary during the company's earnings call. This combination prompted a sell-off as the specific miss in a high-growth area outweighed the broader earnings beat.

IBM is up 28.6% since the beginning of the year, and at $282.74 per share, it is trading close to its 52-week high of $294.78 from June 2025. Investors who bought $1,000 worth of IBM’s shares 5 years ago would now be looking at an investment worth $2,377.

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