By Ion Jauregui – Analyst at ActivTrades
IBM (NYSE: IBM) has announced an ambitious investment of $150 billion in the United States over the next five years, aiming to strengthen its position in the development of quantum computers, mainframes, and critical infrastructure technologies. This strategic decision comes at a key moment when the U.S. technology sector is repositioning itself as a global innovation engine.
This announcement adds to the recent commitment by giants such as Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL), which have jointly pledged over $500 billion in investments, consolidating an unprecedented wave of technological spending. The move not only reflects confidence in the sector's potential but also responds to the current geopolitical context, which is driving the relocation of strategic capabilities to U.S. soil.
Recent Financial Results of IBM
In the first quarter of 2025, IBM reported revenues of $14.54 billion, exceeding analysts’ expectations. The company posted adjusted earnings per share of $1.60, although this represented a 5% decrease compared to the previous year. The software division showed 7% growth, reaching $6.34 billion, while the consulting and infrastructure units experienced revenue declines.
Despite macroeconomic challenges and reductions in government contracts, IBM maintains its revenue growth forecast of at least 5% for 2025 and expects to generate free cash flow of approximately $13.5 billion.
IBM Analysis
At market close on April 29, 2025, IBM shares were trading at $246.95, representing a 2.38% decrease from the previous day. However, over the past year, shares have shown a positive trend, rising by 22%, reflecting investors' confidence in the company’s long-term strategy. Since May 2023, the stock has been trending upward in a sequence closely aligned with its quarterly earnings releases.
In the most recent cycle since March, combined with the U.S. tariff situation—which has significantly affected IBM—the share price dropped to $214.50, after which a strong support zone was established at that level. Currently, moving average crossovers indicate an intersection between the 50-day and 100-day moving averages, suggesting the price could return toward $222.49, slightly below the 38.20% level ($234.34), with the mid-zone around $240.48. This level coincides with previous resistances, now acting as support.
Currently, the Point of Control (POC) is located around $185, well below the current trading zone and the last impulse area. The RSI is at 49.91%, slightly oversold, which could lead to an upward price movement if quarterly results prove positive—as seen on previous occasions.
Impact on the S&P 500 and Outlook
The market reaction has been swift. The S&P 500 index, where IBM is a historic component, could benefit indirectly from this renewed investment momentum. Although IBM has not had the market spotlight of its more modern peers, its focus on high-value technologies such as quantum computing could lead to a progressive revaluation of its shares and support diversification within the index.
In an environment driven by artificial intelligence, semiconductors, and technological autonomy, IBM wants to make it clear that it remains in the game. Its bold move not only reinforces its role in the digital ecosystem but also underscores the renewed dynamism of the technology sector within the S&P 500.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.
IBM (NYSE: IBM) has announced an ambitious investment of $150 billion in the United States over the next five years, aiming to strengthen its position in the development of quantum computers, mainframes, and critical infrastructure technologies. This strategic decision comes at a key moment when the U.S. technology sector is repositioning itself as a global innovation engine.
This announcement adds to the recent commitment by giants such as Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL), which have jointly pledged over $500 billion in investments, consolidating an unprecedented wave of technological spending. The move not only reflects confidence in the sector's potential but also responds to the current geopolitical context, which is driving the relocation of strategic capabilities to U.S. soil.
Recent Financial Results of IBM
In the first quarter of 2025, IBM reported revenues of $14.54 billion, exceeding analysts’ expectations. The company posted adjusted earnings per share of $1.60, although this represented a 5% decrease compared to the previous year. The software division showed 7% growth, reaching $6.34 billion, while the consulting and infrastructure units experienced revenue declines.
Despite macroeconomic challenges and reductions in government contracts, IBM maintains its revenue growth forecast of at least 5% for 2025 and expects to generate free cash flow of approximately $13.5 billion.
IBM Analysis
At market close on April 29, 2025, IBM shares were trading at $246.95, representing a 2.38% decrease from the previous day. However, over the past year, shares have shown a positive trend, rising by 22%, reflecting investors' confidence in the company’s long-term strategy. Since May 2023, the stock has been trending upward in a sequence closely aligned with its quarterly earnings releases.
In the most recent cycle since March, combined with the U.S. tariff situation—which has significantly affected IBM—the share price dropped to $214.50, after which a strong support zone was established at that level. Currently, moving average crossovers indicate an intersection between the 50-day and 100-day moving averages, suggesting the price could return toward $222.49, slightly below the 38.20% level ($234.34), with the mid-zone around $240.48. This level coincides with previous resistances, now acting as support.
Currently, the Point of Control (POC) is located around $185, well below the current trading zone and the last impulse area. The RSI is at 49.91%, slightly oversold, which could lead to an upward price movement if quarterly results prove positive—as seen on previous occasions.
Impact on the S&P 500 and Outlook
The market reaction has been swift. The S&P 500 index, where IBM is a historic component, could benefit indirectly from this renewed investment momentum. Although IBM has not had the market spotlight of its more modern peers, its focus on high-value technologies such as quantum computing could lead to a progressive revaluation of its shares and support diversification within the index.
In an environment driven by artificial intelligence, semiconductors, and technological autonomy, IBM wants to make it clear that it remains in the game. Its bold move not only reinforces its role in the digital ecosystem but also underscores the renewed dynamism of the technology sector within the S&P 500.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.