IBM Lands $240 Million AI Deal with Together AI to Scale Inference

IBM (NYSE: IBM ) shares are trading higher on Tuesday as the company is expanding its AI capabilities through a $240 million multi-year agreement with Together AI. The companies aim to deploy a large cluster of NVIDIA HGX B300 systems on IBM Cloud, with availability expected in the first quarter of 2027. • IBM stock is showing upward movement. What’s pushing IBM stock higher?

IBM and Together AI Partner To Scale AI Inference This collaboration aids in enhancing AI workloads for enterprises, positioning IBM to better serve its clients during a mixed market backdrop. The partnership aims to create the first large-scale inference cluster on IBM Cloud, designed to facilitate fast and efficient production for AI applications. Together AI will use the infrastructure for open-source AI model inference. The deployment will be the first dedicated large-scale inference cluster on IBM Cloud using HGX B300 systems and NVIDIA Spectrum-X Ethernet networking, designed to significantly boost AI processing capacity.

62. 31, indicating a bearish trend as the 20-day SMA is below the 50-day SMA, a sign of potential weakness. 90, suggesting a neutral momentum state, indicating that the stock is neither overbought nor oversold. This positioning allows for potential movement in either direction, depending on market sentiment and upcoming catalysts.

50 — Nearby level where rebounds can stall. 00 — Level where buyers previously stepped in. 19%. 15% over the last 90 days.

49 percentage points, the overall trend suggests the sector is facing headwinds. This context is important for traders as it highlights the stock’s relative strength against a backdrop of broader sector weakness. IBM Earnings Preview and Analyst Price Targets IBM is slated to provide its next financial update on Oct. 21(estimated).

12. 78 — Stock is trading at a steep premium relative to peers. 42 — Indicates moderate growth potential. 22 — Reflects a strong balance sheet and operational efficiency.

95 — Stock is underperforming the broader market. The Verdict: IBM’s Edge signal reveals a mixed profile, with strong quality metrics but weak momentum. This suggests a focus on stability and potential for growth, albeit with challenges in market performance. 60% Weight Significance: Because IBM carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

58 at the time of publication on Tuesday, according to Pro data. Photo via Shutterstock