When Arvind Krishna took over the CEO role at (NYSE: IBM) in 2020, he began a reinvention of the storied tech giant, transitioning its focus to cloud computing and artificial intelligence (AI). With the transition completed, this new IBM saw its share price jump on Sept. 20 after it garnered an outperform rating from investment bank RBC Capital analyst Matthew Swanson.

Given the company's shift to the red-hot cloud computing and AI sectors, and the recent outperform rating, does it make sense to invest in Big Blue? Some compelling reasons justify buying shares. On the other hand, IBM's stock price has increased over recent months, and currently hovers near its 52-week high.

As Wall Street legend Warren Buffett has written, "For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments." So keeping this investing guru's advice in mind, let's dig into the company to determine if IBM is a worthwhile long-term investment.

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Source Fool.com