International Business Machines Corporation (IBM) is a top AI stock with a $340 price target raised by Stifel analyst David Grossman. Q4 2025 saw 7% organic revenue growth and 15% earnings per share growth, positioning IBM as a defensive pick with strong FCF beat and software growth.

IBM’s Q4 FCF outperformed by $0.7bn, contributing to the stock’s rise post-market. Stifel highlights IBM’s robust software performance and recommends it as a top large-cap defensive pick, trading at a 35% premium to S&P500, in line with trend.

IBM is a tech giant and AI pioneer offering consulting services and AI software products. While potential exists for IBM as an investment, other AI stocks may offer greater upside potential with less downside risk. A free report on the best short-term AI stock is available for those seeking opportunities.

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Read more at Yahoo Finance: Why Stifel Says International Business Machines (IBM) Remains a Top Large-Cap Defensive AI Stock