Wedbush sees 35% upside in IBM (NYSE:IBM), reiterating its Outperform rating and $350 price target against a current price of $258.27, after the technology and consulting giant unveiled a sub-1 nanometer chip it believes will reshape AI compute infrastructure.
Analyst Dan Ives argues that the nanostack architecture, which vertically stacks and staggers transistors to maximise density, represents a meaningful leap in IBM's semiconductor roadmap and that the market is underappreciating the company's positioning at the intersection of AI hardware and quantum computing.
The standout figure is transistor density: the new chip packs approximately 100 billion transistors onto a fingernail-sized surface, roughly double the density of IBM's existing 2nm chip, while delivering up to 50% more performance or 70% greater energy efficiency, with a 40% improvement in SRAM scaling that Ives says directly expands chip designers' ability to handle high-bandwidth AI workloads.
IBM also announced plans to spin out a standalone quantum foundry called Anderon, targeting domestic quantum wafer manufacturing, with a production path Ives notes could materialise within five years, a milestone he flags as the next proof point for the thesis that IBM's AI and quantum leadership remains undervalued.
