International Business Machines Corporation (NYSE:IBM) has been a favorite stock of Jim Cramer, a well-known CNBC TV host. Despite the recent AI chip selloff, Cramer remains optimistic about IBM’s prospects. In fact, he considers IBM one of the few quantum computing stocks to buy in 2025. Cramer’s enthusiasm for IBM stems from its strong quantum computing and software businesses. He believes that IBM is an excellent choice for investors who want to invest in tech without being exposed to data centers.

Why Jim Cramer Likes IBM

Cramer’s positive stance on IBM is evident in his recent comments. He highlighted the company’s recent price target and earnings per share increase, courtesy of a report from Bank of America. He also emphasized IBM’s AI capabilities, which he believes are a significant part of the company’s value proposition. Additionally, Cramer pointed out that IBM sells at a reasonable price of 22 times next year’s earnings, making it an attractive investment opportunity.

Green Alpha Investment, a prominent investment firm, also has a positive view of IBM. In its Q1 2026 investor letter, the firm discussed IBM’s industry-leading reference architecture for quantum-centric supercomputing. This blueprint integrates quantum processors alongside GPUs and CPUs into a unified computing environment, enabling the company to tackle complex problems in chemistry, materials science, and optimization. IBM has also announced that 2026 will mark the first time a quantum computer outperforms all classical-only methods on a real scientific problem.

IBM’s Strategic Initiatives

IBM is systematically positioning itself at the intersection of quantum computing, high-performance AI, and enterprise hybrid cloud. This strategic move is expected to lead to next-generation scientific and commercial breakthroughs. The company has also announced a new 10-year research collaboration with ETH Zurich on next-generation AI and quantum algorithms. This partnership is expected to drive innovation in the field of quantum computing and AI.

IBM’s hybrid cloud and AI platform, anchored by Red Hat OpenShift, continues to serve as the enterprise backbone for thousands of government and corporate entities in financial services, telecom, and healthcare. The recent ~$11 billion acquisition of Confluent has strengthened real-time enterprise data streaming, while expanded collaborations with NVIDIA and ARM have deepened IBM’s AI infrastructure capabilities.

IBM’s Quantum Computing Efforts

IBM has made significant strides in quantum computing, with its industry-leading reference architecture for quantum-centric supercomputing. This blueprint integrates quantum processors alongside GPUs and CPUs into a unified computing environment, enabling the company to tackle complex problems in chemistry, materials science, and optimization. IBM has also announced that 2026 will mark the first time a quantum computer outperforms all classical-only methods on a real scientific problem.

IBM’s quantum computing efforts are expected to drive innovation in the field of quantum computing and AI. The company’s strategic partnerships with leading research institutions and technology companies are expected to lead to significant breakthroughs in the field.

In conclusion, Jim Cramer’s recommendation of International Business Machines Corporation (IBM) shares is based on the company’s strong quantum computing and software businesses. Despite the recent AI chip selloff, Cramer remains optimistic about IBM’s prospects, citing the company’s reasonable price and strong AI capabilities. Green Alpha Investment also has a positive view of IBM, highlighting its industry-leading reference architecture for quantum-centric supercomputing and its strategic initiatives in the field of quantum computing and AI.