Investors who wrote off International Business Machines (NYSE: IBM) after years of decline and stagnation may need to take another look. The 112-year-old company has worked to return itself to the cutting edge of today's technology industry.

It accomplished this with the purchase of Red Hat and by spinning off a stagnant managed infrastructure business into Kyndryl. Moreover, it accomplished this without alienating a longtime constituency of shareholders. Returning to the cutting edge could also make it a tech stock worth owning. Here are three key reasons why.

The aforementioned purchase of Red Hat in 2019 amounted to an "all-in" bet on the cloud, costing it $34 billion and dramatically increasing its long-term debt.

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Source Fool.com