Up Nearly 20% in 2025, Should You Buy, Sell, or Hold IBM Stock?

International Business Machines (IBM) has had an impressive year so far, delivering a 19% gain in 2025, far outpacing the S&P 500 Index ($SPX), which has dipped around 3%. The driving forces behind IBM’s growth include its thriving software business and significant artificial intelligence (AI)-led opportunities, which have helped boost investor confidence in the stock.

The technology and consulting giant’s software segment has been a key growth driver, with revenue expanding by 10.4% in the fourth quarter to $7.8 billion. Red Hat, a major component of IBM’s software business, saw a 16% revenue increase, reflecting strong demand for its hybrid cloud solutions. Other areas like automation grew 15%, transaction processing 10%, and both data & AI and security posted 4% gains.