A new company backed by International Business Machines Corp. (NYSE:IBM) is receiving a $1 billion U.S. government investment to establish America’s first quantum foundry, supporting Wall Street forecasts that IBM will be a central player in the global quantum industry.
Validating The ‘Massive Upside’
This historic federal backing confirms Wedbush Securities analyst Dan Ives‘ thesis. Analyzing the tech sector’s trajectory, Ives told CNBC that IBM is a “sleeping giant” and praised its strategic direction, noting that IBM “continues to be one that has massive upside.”
Ives forecasted this type of aggressive government intervention. Highlighting the technological “arms race” between the U.S. and China, he stated investors needed to watch the White House, predicting they were “going to continue to make stakes no different than Intel.” That foresight materialized flawlessly with this new CHIPS Act funding strategy.
The $1 Billion Quantum Bet
Through the CHIPS and Science Act, the Department of Commerce signed a Letter of Intent to award IBM $1 billion. The funds will establish Anderon, a new, standalone, pure-play quantum foundry located in Albany, New York.
To solidify the initiative, IBM will match the federal funding with its own $1 billion cash investment.
Secretary of Commerce Howard Lutnick championed the historic federal award, declaring that the administration is “leading the world into a new era of American innovation.”
Anderon will specialize in producing 300-millimeter quantum wafers, creating a secure domestic supply chain for the nation’s critical infrastructure.
Broadening The Tech Ecosystem
IBM’s foundry win is the anchor of a broader $2 billion federal push into the technology. The administration is also allocating $375 million to GlobalFoundries Inc. (NASDAQ:GFS) and directing $100 million in equity-based awards to smaller firms such as D-Wave Quantum Inc. (NYSE:QBTS) and Rigetti Computing, Inc. (NASDAQ:RGTI).
Just recently, Ives characterized the quantum sector as still sitting in the “dugout,” noting the game had not yet started.
With the Trump administration officially deploying billions to build a domestic ecosystem, the push for scalable quantum technologies is officially underway.
How Has IBM Performed In 2026?
In comparison with the S&P 500’s 8.56% year-to-date advance, shares of IBM have declined by 14.60% over the same period. It closed 12.43% higher on Thursday at $252.97 per share.
Over the last month, IBM stock was down 1.06%, and it dropped 14.95% and 3.03% over the last six months and the year, respectively. Benzinga’s Edge Stock Rankings indicate that IBM maintains a weak price trend in the medium, short, and long terms, with a moderate growth ranking.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Shutterstock
Recent Comments