u/Rez_X_RS

The stock has fallen to near its April lows, has a forward P/E of 16, and an RSI of 22, indicating it is potentially oversold. The market is overly pessimistic about the immediate threat of AI to IBM's business model. The author believes the company's current valuation does not reflect its potential for a turnaround, making it an attractive entry point for a value-oriented, contrarian investment. The stock is considered undervalued due to a recent price drop and a reasonable forward valuation, presenting a favorable risk/reward opportunity for a rebound in the coming months. The primary risk is that the market's concerns about AI's impact on IBM are justified and will materialize sooner than the author expects, leading to further business deterioration and stock price decline. The company's "AI achievements constantly falling short" could be a symptom of a deeper, more persistent problem.