IBM shares dropped significantly after Anthropic’s announcement of a new technology that could impact COBOL systems, a market in which IBM is a major player. This caused a broader decline in software stocks, with IBM losing up to 28% this month. However, Evercore ISI recommends buying IBM stock due to its strong infrastructure and modernization efforts. Analysts believe the recent selloff in IBM shares has been overdone, with a consensus rating of “Moderate Buy” and a potential 27% rally from current levels. IBM’s integration of AI technology and high-margin stability make it an attractive long-term investment option.

Read more at Barchart: Should You Buy the Dip in Oversold IBM Stock Today?