Tech giant IBM (IBM) is planning to invest $10 billion in quantum computing over the next five years. The spending will go toward research and development, capital expenditures, manufacturing, and potential acquisitions. The goal is to help IBM deliver a large-scale, fault-tolerant quantum computer by 2029, which would be a major milestone in making quantum computing more useful at scale.
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IBX: an alternative to margin or options on IBMThe investment also comes shortly after the Trump administration said it would award IBM a $1 billion grant to develop purpose-built quantum chips through a new venture called Anderon. IBM has also committed $1 billion of its own money toward building the Anderon foundry in the U.S. Notably, that grant is part of a larger $2 billion Department of Commerce package for nine quantum-computing companies, in which the federal government is expected to receive minority stakes in each company.
Importantly, IBM is trying to position itself as one of the main infrastructure players in quantum computing, and not just as a company that is experimenting with the technology. IBM said that it has already deployed more than 90 quantum systems, which helps explain why it is widely viewed as one of the leaders in the race to build and validate quantum computers at scale. As a result, with government funding, internal investment, and a 2029 target, IBM is making quantum a much more serious part of its long-term strategy.
Is IBM a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on 10 Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $287.80 per share implies 8.5% upside potential.
