IBM (IBM) stock jumped 12% on Thursday after the US government announced it would award the company $1 billion to build a quantum chip manufacturing facility.
International Business Machines Corporation, IBM
IBM closed at $252.97, marking its biggest single-day gain in more than a year.
The funding is part of a broader $2 billion initiative from the Commerce Department targeting the quantum computing sector. It comes from a research and development fund that received $11 billion under the 2022 Chips and Science Act.
Quantum stocks just got a major government-backed catalyst…
The U.S. is reportedly awarding $2B in quantum grants, with $IBM, Rigetti $RGTI and D-Wave $QBTS among the names in focus
Analyst Ratings: IBM: 1 Strong Buy, 12 Buy, 7 Hold, 0 Sell. pic.twitter.com/LuPXNuGY4r
— Wall St Alpha (@WallStAlphaPro) May 21, 2026
IBM is also putting in $1 billion of its own money. The company will use both the government award and its own investment to launch a new business called Anderon, which will produce quantum processors.
The facility will be built at an existing semiconductor manufacturing research center in Albany, New York. Senator Chuck Schumer confirmed the award in a statement Thursday.
The government will receive minority, noncontrolling equity stakes in each company receiving funding — a structure that reflects Commerce Secretary Howard Lutnick’s push to generate returns on Chips Act money.
IBM wasn’t the only name to move. GlobalFoundries, which is receiving $375 million to develop specialized chips for quantum computing, rose 15%.
D-Wave Quantum gained 33%, Rigetti Computing climbed 31%, and Infleqtion surged 31%. All three signed letters of intent with the Commerce Department for up to $100 million each.
Atom Computing and Quantinuum also received $100 million awards. Startup Diraq is set to get $38 million.
The $2 billion package draws from an $11 billion R&D fund within the broader $52 billion Chips Act. Last year, Lutnick redirected $7.4 billion of that fund — money previously allocated to a nonprofit — toward investments that would provide a financial return to the government.
The quantum push is an extension of that strategy.
The deals have not yet been finalized.
According to GuruFocus, IBM’s stock is currently trading at a 6.4% premium to its calculated intrinsic value of $237.81. The company’s GF Score stands at 80 out of 100, with profitability rated 8/10 and valuation 9/10. Financial strength and momentum are weaker at 5/10 and 4/10, respectively.
IBM’s P/E ratio sits at 22.37x, below its five-year median of 24.13x.
In the past three months, insiders have made modest net purchases of around $113,000 in IBM stock, with no insider selling reported.
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