International Business Machines (NYSE: IBM) stock surged back to life over the last three years, more than doubling in value. That remains true despite a material pullback in 2026 as investors worry about the impact that artificial intelligence (AI) will have on its business. Here’s why now could still be a good time to buy IBM if you are a long-term investor.
The main reason to buy IBM now, after a recent drawdown, is the technology giant’s quantum computing business. While AI is the darling of Wall Street today, quantum is waiting in the wings to join, if not take over, the spotlight. AI uses massive amounts of computer power, and quantum has the potential to vastly increase the amount of computing power available.
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However, the reason to buy IBM stock isn’t directly related to quantum computing. That’s really a sign of a much bigger story. To understand IBM, you really need to go back about 100 years, to the company’s founding.
When IBM started out, it made things like scales. That’s a far cry from quantum computing, which is the important takeaway. IBM didn’t simply spring into existence; it evolved and changed over time into the business it is today. The company has proven, many times over, that it can keep pace with the technology that its largely business customers need and want.
Not many companies manage to survive as long as IBM has. It requires a specific culture that lives beyond any single employee, generation, or technology. Right now, investors are worried that AI will hurt IBM’s business. It might in the near term, but over the long term, the company is highly likely to use AI as a tool to better serve its customers.
Quantum is one example of how fears about AI could be overblown with IBM, given that quantum is likely to work hand in hand with AI. However, there are smaller ways in which AI will likely help.
Notably, IBM provides services to companies running older operating systems, such as COBOL. AI may be able to quickly address coding issues with such systems, but it likely won’t be able to provide the business logic and process flow that specific customers need to actually run their businesses. That’s where a human consultant comes in. Aided by AI, IBM will be able to work more quickly and efficiently.
