Shares in International Business Machines (IBM) stock have hit a record high on Tuesday following the tech giant’s latest deal with Anthropic AI. IBM announced a partnership with the artificial intelligence startup on Tuesday, along with several other product updates, to boost the use of generative AI by businesses. Shares hit a record high of 301.04 in earlier trading, IBM’s first record high since late June.

Per the announcement, Anthropic’s Claude large language models will be infused into IBM’s software portfolio, starting with IBM’s “integrated development environment” offering for software development. “IBM has been the backbone of enterprise technology for decades because we understand what it takes to deploy at scale in mission-critical environments,” said Dinesh Nirmal, SVP, Software at IBM. “This partnership enhances our software portfolio with advanced AI capabilities while maintaining the governance, security, and reliability that our clients have come to expect. We’re giving development teams AI that fits how enterprises work not experimental tools that create new risks.”

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IBM made several announcements on Tuesday ahead of the company’s annual TechXchange developer conference. Through a news release, the company highlighted its Watsonx Orchestrate offering, which it said has more than 500 tools to help businesses deploy customized AI agents. Shares are now up 33.7% YTD, including an 18% climb in the last month. This past summer, IBM also said it has a plan for building what it calls the world’s first large-scale, fault-tolerant quantum computer at its New York data center before the end of the decade.

IBM stock has outperformed most market analysts’ forecasts, and is even outperforming the S&P 500 index this year. At press time, shares are trading near the top of their 52-week range and above their 200-day simple moving average. Analysts at CNN suggest that a further 18.8% climb to $350 is possible for IBM if positive investor sentiment holds.