IBM's Undervalued Chip and AI Push Ignite Long-Term Growth Hopes

International Business Machines (IBM) has made significant strides in its AI and hybrid cloud ambitions, unveiling a dual-architecture mainframe processor that can run both IBM and Arm workloads. The company also showcased new AI-powered fan features at the 2026 US Open tennis tournament.

This move gives investors a real-time look at how IBM is tying its AI and hybrid cloud efforts to concrete products and high-profile customer deployments, rather than just relying on AI revenue figures alone.

The stock's share price has been down about 19% year-to-date and around 16% over the past 90 days. However, its 3-year total shareholder return of approximately 74% and 5-year total shareholder return of about 117% indicate stronger longer-term rewards despite recent volatility.