International Business Machines (IBM) stock is up 13% in the last 24 hours following a better-than-expected Q4 2024 earnings report. The computing giant’s results were boosted by its AI business’ recent success. According to analysts, IBM stock looks set to stage a breakaway gap above the top trendline of an ascending triangle pattern after the company’s upbeat results.

The company says its generative AI book of business grew by almost $2 billion from Q3 2024. IBM says clients globally are turning to them in an effort to enhance their enterprises by using AI. IBM’s software segment revenue grew 10.4% from a year earlier to record its biggest jump in five years, helping to offset softness in its consulting and infrastructure businesses.

Year-to-date, IBM is up 17%, showing promise as a reliable AI stock to invest in. Technical indicators on its stock price chart indicate promise at certain price levels if IBM succeeds. The measuring principle forecasts an upside target of $278, while bars pattern analysis projects a target of $305 and indicates that the uptrend may play out until May. According to one Investopedia analyst, Investors should watch a key support level on IBM’s chart around $238. This is an area that may attract buying interest on a retest of the ascending triangle’s top trendline. If the stock corrects to this level but doesn’t fall below it, it may be the best opportunity to buy the stock before the next climb.

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IBM To Continue Growth in 2025: BofA Backs the Stock

IBM stock has surged 65% over the past three years thanks to new leadership. In 2021, IBM’s cloud chief Arvind Krishna took the helm as its new CEO. Following Krishna’s appointment, IBM’s revenue grew at a CAGR of 4% from 2021 to 2023. Its EPS increased at a CAGR of 13%. That surprising stabilization caused IBM’s stock to nearly double over the past four years, roughly matching Microsoft’s gains.

Bank of America analysts also suggest that now may be a good time to buy IBM stock if you’re looking to invest in AI options. Analysts at BofA believe that the pullback created idiosyncratic buy opportunities in certain stocks. The banking institution cites IBM’s defensive nature and potential for growth amid market volatility. Additionally, IBM shares remained solid in value despite a huge market dip earlier in the week courtesy of DeepSeek AI.

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Furthermore, BofA also highlighted IBM catalysts including a new mainframe cycle, acceleration in its Software division, and mergers and acquisitions activity. Additionally, analysts project higher growth in Software for the next three years, driven by Enterprise AI opportunities and the launch of a new Mainframe (z17) in 2025. “For IBM, AI represents an opportunity in its Consulting business as it seeks to position itself as the go-to partner of choice for AI consulting,” BofA says in a note.