IBM Corp.'s (IBM) stock was marginally higher in Monday's early premarket session as traders await the business services giant's quarterly results due after the market closes on Wednesday. Ahead of the quarterly print, a prominent tech analyst sounded upbeat about the company's artificial intelligence opportunity.

Ives Says IBM Q3 Estimates Achievable

In a note published late Sunday, Wedbush analyst Ives said he expects another solid quarter, driven by AI demand for the company's diverse offerings. The analyst noted that the company continues to engage in meaning partnerships across its portfolio. 

Ives expects IBM to continue to capitalize on its“business flywheel,” buoyed by innovation, hybrid cloud expansion and healthy underlying AI demand.“We believe IBM remains a dynamic name to own in the AI Revolution,” he said. 

The analyst believes that Wall Street estimates for the third quarter are achievable. The company is part of the“Ives AI 30” list as well as Wedbush's“Best Ideas” list. The analyst maintained a 'Buy rating' and a $325 price target for the IBM stock, implying roughly 16% upside from Friday's close.

What Analysts Expect For IBM Q3

According to Fiscal consensus estimates, Armonk, New York-based IBM is expected to report adjusted earnings per share (EPS) of $2.44 and revenue of $16.10 billion for the third quarter of the fiscal year 2025. This compares to the year-ago numbers of $2.65 and $14.97 billion, respectively.

IBM's full-year guidance issued in late July calls for revenue growth of at least 5%, while analyst brace for 6.5% growth.

What IBM Retail Traders Are Focused On

Several retail users of the Stocktwits platform flagged IBM as key earnings they would watch for in the unfolding week.

A user said $275 support us a critical level to watch out for as the stock trades around the 280 level and has seen steady volume in the three to five million range.

IBM stock has gained about 60% this year, outperforming the broader market and the tech sector.

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