Microsoft and IBM Just Hit Fresh Highs. Both Are Still Set for AI-Driven Gains, Analysts Say

• Microsoft and IBM shares both closed at all-time highs Monday.

• The two tech titans are coming out of a week where both stocks set multiple records.

• Still, some Wall Street analysts have suggested both could have room to rise, expecting more AI-driven gains.

Microsoft (MSFT) and International Business Machines (IBM) shares both closed at record highs Monday, building on a string of recent gains.

Shares of Microsoft edged almost 2% higher Monday to close at $486, while IBM added nearly 3% to $289.18, with both among the Dow’s best-performing stocks for the day. In 2025 so far, IBM stock has gained nearly a third of its value, while Microsoft has climbed 15%.

Still, some Wall Street analysts have suggested both could have room to rise, expecting more AI-driven gains.

Last week, Bernstein analysts reportedly said Microsoft’s partnership with OpenAI “can generate huge potential revenue upside” for its Azure cloud platform. Wedbush meanwhile said Microsoft “is currently in the driver’s seat on the AI front,” in a note to clients. Wall Street’s consensus price target according to Visible Alpha is about $531, implying 9% upside from Monday’s close.

IBM meanwhile could be “well-positioned to capitalize on the current demand shift for hybrid and AI applications,” Wedbush analysts said Friday. The firm raised its price target to $325 from $320, which represents a 12% premium to Monday’s close. With its recent gains, IBM has surpassed the mean of targets compiled by Visible Alpha at $264.

IBM launched new software last week it says could help clients keep their AI agent systems “responsible at scale.” IBM also recently said it believes it has a “viable path” to building the world’s first large-scale, “fault-tolerant” quantum computer by the end of the decade.

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