Government Award Sparks Quantum Rally
IBM shares rallied for a second straight day after the company received a 1 billion dollar award from the U.S. government to support its quantum computing business.
The award forms part of a broader 2 billion dollar federal package for nine quantum companies. The deals include equity stakes and have triggered a wider rally across quantum computing stocks.
IBM To Build Quantum Chip Foundry
The investment will help fund the construction of a quantum computing chip foundry. IBM said the facility will be the first pure-play quantum foundry in the United States.
The company will also invest 1 billion dollars of its own capital to launch the new business, which will be called Anderon. The project strengthens IBM’s effort to position itself as a central player in the next generation of computing infrastructure.
Shares Extend Their Recovery
IBM stock gained more than 2% to 259.35 on Friday, following a 12% jump on Thursday when the government investment was first announced.
The move offered a needed lift for the stock, which had been under pressure earlier this year. After rising 34% in 2025, IBM shares were down 24% year-to-date before the Trump administration’s quantum funding announcement.
Quantum Computing Remains Early Stage
Quantum computers use qubits, or quantum bits, to process information in ways that could eventually be far faster than traditional computers for certain complex tasks.
The technology has long attracted investor attention because of its potential to drive scientific, industrial and technological breakthroughs. However, quantum computing remains early in its development, and large-scale commercial use is still viewed as a long-term opportunity.
Analysts See IBM As A Leader
Wall Street analysts viewed the award as a positive catalyst for the industry. Wedbush analyst Dan Ives said U.S. government funding could accelerate quantum initiatives, with IBM positioned at the center of the push.
Wedbush quantum analyst Antoine Legault said the decision to direct half of the package to IBM reflects the company’s mature and production-ready roadmap. In his view, IBM has one of the strongest quantum strategies in the sector.
Race For Quantum Leadership Intensifies
IBM has already committed major capital to quantum and advanced computing. Last year, the company said it would invest 150 billion dollars in the United States, including 30 billion dollars toward manufacturing mainframe and quantum computers in Poughkeepsie, New York.
The company had previously targeted 2029 for the launch of a large-scale quantum computing center. It is competing with major technology companies including Amazon, Microsoft and Alphabet, as well as specialized quantum firms such as D-Wave Quantum and Rigetti Computing.
AI Concerns Had Weighed On IBM
Before the quantum announcement, investors had grown concerned that artificial intelligence tools could disrupt parts of IBM’s existing business, including its mainframe and consulting operations.
Those concerns intensified in February after Anthropic published a blog post showing how its Claude AI model could support COBOL code modernization. The post was viewed as a possible threat to IBM’s COBOL-powered mainframe business and related consulting services.
Other Quantum Stocks Surge
The government funding package lifted several other quantum names. D-Wave climbed 11% Friday morning after jumping 33% Thursday, while Rigetti rose more than 7% following a 30% rally.
Infleqtion, another funding recipient, gained 10% after rising 30% the previous day. GlobalFoundries, which received 375 million dollars from the quantum package, added 6% Friday morning after a 15% rally Thursday. For investors, the announcement signals that quantum computing is becoming a bigger strategic priority, even if the technology’s commercial payoff remains years away.
