IBM AI Momentum Meets Earnings Buzz: Is The Stock Ready For A Cloud-Powered Climb?

As IBM IBM gears up for its third quarter earnings report after Wednesday's market close, all eyes are on its expected EPS of $2.23 and revenue of $15.07 billion.

The software giant has been riding high, boasting a year-to-date gain of 43.81%, and a whopping 70.30% surge over the past year.

With SAP SE's SAP recent report setting the stage for the cloud business outlook, investors are looking to IBM, Oracle Corp ORCL, and Microsoft Corp MSFT to see if they can keep up with the evolving cloud landscape.

Read Also: SAP Beats Q3 Expectations, Analysts Expect ‘Big Cash-Flow Ramp In 2025’

IBM isn't sitting still in the AI race either. Fresh off the launch of Granite 3.0, its most advanced AI models built for business, Big Blue is flexing its AI muscle.

These models not only compete with industry leaders but also emphasize performance, safety, and open-source collaboration, giving IBM a strategic edge in the AI space.

IBM Stock Chart Looks Ready To Extend Its Climb

On the charts, IBM stock’s current trend remains bullish, supported by bullish signals from key indicators.

Chart created using Benzinga Pro

Trading at $231.30, the stock sits above its 20-day ($228.59), 50-day ($214.45) and 200-day ($188.61) simple moving averages (SMAs)—driven by bullish momentum in the medium-to-long-term.

Chart created using Benzinga Pro

However, the Relative Strength Index (RSI) at 65.75 suggests IBM is nearing overbought territory, hinting that investors might want to tread carefully. The stock’s Moving Average Convergence/Divergence (MACD) at 5.33 also signals positive momentum, reflecting slight buying pressure.

Meanwhile, with the eight-day SMA at $232.78, there's a minor bearish signal in the short term, but overall, IBM looks ready to extend its climb.

The Granite 3.0 launch, coupled with a strong cloud business outlook, puts IBM in the spotlight ahead of earnings. Whether the stock can maintain its stellar run remains to be seen, but the technicals—and the AI—are certainly in its favor.

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