IBM’s stock surged 12.48% to close at $252.97 on May 21, its biggest single-day gain in over a year. This jump followed an announcement that the Trump administration’s $2 billion federal investment in quantum computing includes a proposed $1 billion CHIPS Act grant for IBM. The company will form a standalone quantum chip foundry called Anderon, matching the government’s investment with $1 billion of its own cash and assets.
IBM’s stock price rose sharply after the U.S. Department of Commerce signed a Letter of Intent to provide the company with a proposed $1 billion grant. This funding is part of a broader $2 billion federal investment in quantum computing under the CHIPS Act. The grant will help establish Anderon, a new standalone quantum chip foundry headquartered in Albany, New York.
IBM will match the government’s $1 billion with an equivalent contribution of its own cash, intellectual property, and workforce. The Andeon facility will operate a 300-millimeter quantum wafer production line starting with superconducting qubit technology. The quantum industry is projected to generate up to $850 billion in economic value by 2040.
IBM Chairman and CEO Arvind Krishna stated the company’s fabrication work “will be critical to enable a broader quantum technology landscape that will reshape global innovation and economic competitiveness.” Secretary of Commerce Howard Lutnick said the investments “will build on our domestic industry, creating thousands of high-paying American jobs while advancing American quantum capabilities.”
The company’s recent financial performance was also strong, with Q1 non-GAAP EPS of $1.91 beating consensus and revenue growing 9% year-over-year. At the time of writing, 10 of 22 covering brokerages rate IBM a Strong Buy, and the average brokerage recommendation has improved. The final agreements between IBM and the Commerce Department are still pending.
