IBM stock is having a good day. Shares of the tech giant jumped about 9% on Thursday after the company announced it's teaming up with the U.S. Department of Commerce to build something that doesn't exist yet in America: a purpose-built quantum foundry.
For those who don't speak semiconductor, a foundry is basically a factory that makes chips. A quantum foundry makes chips that run on the weird physics of quantum mechanics, which could eventually solve problems that today's computers can't touch. Think drug discovery, climate modeling, or breaking encryption (the good kind, presumably).
Here's how the deal works. IBM and the Commerce Department signed a Letter of Intent to create a new company called Anderon. This new company will focus entirely on quantum wafer production — that's the process of making the actual quantum chips. Anderon will be based in Albany, New York, and operate as an independent company. It will run an advanced 300mm quantum wafer foundry, which is the same size wafer used in cutting-edge classical chip manufacturing.
The government is putting up $1 billion in CHIPS Act incentives. IBM is matching that with $1 billion in cash, plus it's contributing key intellectual property, assets, and specialized talent. So total investment: $2 billion, give or take.
The goal is to strengthen U.S. leadership in quantum computing, an industry that's projected to create up to $850 billion in economic value by 2040. That's a lot of zeros, and the government wants to make sure those zeros land in America.
AI Security Gets a Boost Too
This isn't the only thing IBM has been up to this week. The company also announced an expansion of its enterprise security program, with partnerships aimed at defending against AI-driven cyber threats. IBM is working with Anthropic as part of Project Glasswing, which focuses on protecting critical software infrastructure and sharing findings with the broader community. Because if you're going to build the future of quantum computing, you probably want to make sure your current computers aren't getting hacked by AI.
What the Charts Say
Let's look at the technical picture. IBM's current price of $238.20 is 5% above its 20-day simple moving average of $226.25, which suggests a bullish short-term trend. But the 50-day SMA at $237.73 is just barely below the current price, so there's some potential resistance nearby. The MACD is above its signal line, which means downside pressure is easing and momentum is improving. If the stock can hold its ground, there could be more upside.
Key levels to watch: resistance at $258.50, a round-number area where rebounds have stalled before. Support at $233.50, where buyers have stepped in recently.
Earnings and Analyst Views
IBM is scheduled to report its next financial results on July 22, 2026. Analysts expect earnings per share of 302 cents, up from 280 cents a year ago. Revenue is expected to hit $17.85 billion, up from $16.98 billion. The stock trades at a P/E of 19.9x, which is reasonable for a company with this kind of growth story.
Wall Street is broadly bullish. The stock carries a Buy rating with an average price target of $286.67, implying about 17% upside from current levels. Recent analyst moves include:
- RBC Capital: Outperform, target lowered to $300.00 (May 6)
- Wedbush: Outperform, target maintained at $320.00 (May 6)
- HSBC: Upgraded to Hold, target raised to $231.00 (April 28)
ETF Exposure
If you want to own IBM without buying the stock directly, a few ETFs have heavy exposure. The First Trust NASDAQ Technology Dividend Index Fund (TDIV) has an 8.41% weight in IBM. The FT Vest Technology Dividend Target Income ETF (TDVI) has an 8.42% weight. And the Invesco Dow Jones Industrial Average Dividend ETF (DJD) has a 5.09% weight. Because IBM carries such heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
Price Action: IBM shares were up 8.92% at $245.06 at the time of publication on Thursday.
