Trump Administration's $2 Billion Quantum Computing Investment Boosts Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: stocktwits
- Quantum Computing Surge: The Trump administration's announcement of a $2 billion investment in quantum computing has led to significant stock price increases for quantum-related companies like IBM, Rigetti Computing, and D-Wave Quantum, adding nearly $5 billion in market value in a single session, demonstrating strong governmental support for technological innovation.
- IBM Quantum Initiative Boost: IBM's stock rose 4% in early trading, benefiting from a proposed $1 billion federal grant aimed at supporting domestic production of quantum chips, which further solidifies its leadership position in the quantum computing market.
- Optimistic Market Sentiment: Investor sentiment towards the SPDR S&P 500 ETF and Invesco QQQ Trust remains 'extremely bullish', reflecting strong confidence in technology stocks, particularly in the investment outlook for quantum computing and artificial intelligence sectors.
- Economic Data Watch: The market is closely monitoring the upcoming U.S. consumer sentiment data and the swearing-in of new Federal Reserve Chair Kevin Warsh, as these factors could influence future monetary policy and market trends.
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Analyst Views on IBM
Wall Street analysts forecast IBM stock price to rise
16 Analyst Rating
11 Buy
4 Hold
1 Sell
Moderate Buy
Current: 253.840
Low
210.00
Averages
315.80
High
375.00
Current: 253.840
Low
210.00
Averages
315.80
High
375.00
About IBM
International Business Machines Corporation is a provider of global hybrid cloud and artificial intelligence (AI) and consulting expertise. The Company’s segments include Software, Consulting, Infrastructure and Financing. The Software segment includes hybrid cloud and AI platforms, which allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment focuses on integrating skills on strategy, experience, technology and operations by domain and industry. The Infrastructure segment is focused on the hybrid cloud infrastructure market, providing on-premises and cloud-based server and storage solutions. In addition, it offers a portfolio of life-cycle services for hybrid cloud infrastructure deployment. The Financing segment provides client and commercial financing, facilitating its clients’ acquisition of hardware, software and services. It helps clients in more than 175 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- IBM Quantum Foundry: IBM's startup Anderon will receive $1 billion in government incentives, with IBM matching that amount and contributing intellectual property, marking the establishment of the country's first pure-play quantum foundry, which is expected to enhance domestic quantum computing manufacturing capabilities.
- GlobalFoundries Expansion: GlobalFoundries signed a letter of intent to receive $375 million in incentives to expand its Quantum Technology Solutions business, with the government taking about a 1% equity stake, thereby strengthening its competitive position in the quantum manufacturing sector.
- Absence of IonQ: Despite IonQ's strong performance in quantum computing and its acquisition of SkyWater Technology, it was notably excluded from government investments, which may impact its market position, although its technology leads in accuracy with a record 99.99% two-qubit gate fidelity.
See More
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- Global Manufacturing Expansion: GlobalFoundries has signed a letter of intent to receive $375 million in incentives to support its newly established Quantum Technology Solutions business, which will enhance domestic quantum manufacturing capabilities and bolster U.S. competitiveness in the global semiconductor market.
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See More
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- Youth Workforce Advantage: With over half of its 1.4 billion population under 30, India has a significant advantage in the global AI race, potentially deploying a 350 million AI-trained workforce worldwide, enhancing its position as a global services hub.
- Skills Training Commitment: IBM has pledged to train 5 million people in India by 2030 in AI, cybersecurity, and quantum computing, with about 30% of the tech workforce currently possessing the necessary AI skills, highlighting both potential and challenges in talent development.
- Intellectual Property Protection Needs: To become a technology powerhouse, India must strengthen intellectual property protections to ensure that locally developed technologies remain commercially viable internationally, thereby attracting more corporate investment and innovation.
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