{
  "id": 8613715,
  "title": "IBM Once Held Nvidia's Spot as Tech's Biggest Name. The Stock Just Crashed 25%. Here's the Comeback Case.",
  "url": "https://urgent.news/2026/09/18/ibm-once-held-nvidias-spot-as-techs-biggest-name-the-stock-just",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-18T23:00:02.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/ibm-once-held-nvidias-spot-230002527.html"
  },
  "original_language": "en",
  "account": "International Business Machines (IBM) once held Nvidia's position as the biggest name in tech, but recent financial performance has raised concerns. The stock has plummeted by more than 25% since the end of the previous year. However, analysts remain optimistic about IBM's potential for a comeback. The company's software business, supported by Red Hat, is regaining attention. Red Hat provides IBM with a strong position in the hybrid cloud, enabling businesses to integrate applications across private systems and public clouds, a crucial aspect as companies expand their AI workloads. IBM is further enhancing its AI offerings by combining Red Hat with its own AI tools and infrastructure. This strategy aims to strengthen IBM's role in helping businesses build and manage AI across complex IT systems. Despite a significant sell-off in Q2 2026, IBM's revenue grew by around 8% in its latest annual report, and net income improved by 76%. However, the company faced challenges due to unrealistic expectations for the z17 mainframe launch and missed large deals. The Q2 performance fell short of expectations, resulting in a stock price drop of over 25%. Despite these setbacks, IBM's business is primarily built around large enterprises with lengthy sales cycles and multiyear technology commitments. As long as these relationships remain intact, revenue recovery is expected to be gradual. Moreover, IBM's dividend remains a consistent source of income for investors. The company pays a forward annual dividend of $6.76, translating to a current forward yield of approximately 2.72%. With a payout ratio of around 55%, IBM retains ample capacity for reinvestment and dividend growth. The company has raised its dividends for 31 consecutive years, making it a Dividend Aristocrat and demonstrating its commitment to shareholder returns. Analysts are cautiously optimistic about IBM's recovery, with a consensus rating of \"Moderate Buy\" and an estimated upside of 54% over the next year. Currently, IBM's stock is trading at a relative bargain, with a price-to-earnings ratio of just 20 times its forward earnings, compared to the sector median of 28 times. While the company's comeback is still unfolding, its existing customer relationships and growing demand for AI and cloud services present a compelling business model.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}