JPMorgan has bumped IBM from Neutral to Overweight, setting a fresh price target of $291. The move signals renewed conviction in a company that’s been quietly rebuilding itself around software, artificial intelligence, and, increasingly, digital asset infrastructure.

JPMorgan’s relationship with IBM’s stock has been anything but linear in recent months. Back in January 2026, the bank had a price target of $312 on the company. That figure got slashed to $283 in March, after IBM announced its $11B acquisition of Confluent, the data streaming platform. Now the target sits at $291 with an Overweight rating.

The core thesis rests on IBM’s software division, which accounts for nearly half the company’s total revenue.

AI and the watsonx factor

IBM’s Think conference in May 2026 served as the stage for the company’s latest AI flex. The centerpiece was a set of major upgrades to watsonx, IBM’s enterprise AI platform, including multi-agent orchestration features. Multi-agent orchestration lets multiple AI models collaborate on complex tasks, dividing work the way a team of specialists would. JPMorgan’s analysts explicitly cited AI-driven business opportunities as a key factor behind the upgrade.

The tokenization play

In October 2025, IBM launched Digital Asset Haven, a platform developed in collaboration with Dfns. The product supports custody, token issuance, and operational functions across more than 40 blockchain networks. The target audience is institutional clients.

A March 2026 report from the IBM Institute for Business Value projects a significant increase in tokenization within the banking sector, noting that stablecoin transaction volumes already constitute approximately 7% of relevant market transactions. The report anticipates that tokenized assets will become standard bank fare by 2030.

At the Think conference, IBM expanded on this direction by showcasing enhancements to its digital assets platform.