U.S. Plans $2 Billion Investment in Quantum Computing
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: NASDAQ.COM
- Government Investment Incentives: The U.S. Department of Commerce has signed nine letters of intent to provide $2.01 billion in federal incentives under the CHIPS and Science Act to nine quantum computing companies, a move that could attract more retail and institutional investors into this niche market.
- IBM and GlobalFoundries Benefit: The Department has earmarked $1 billion for IBM and $375 million for GlobalFoundries to establish new domestic quantum computing foundries, which could breathe new life into both companies, especially as IBM expands its hybrid cloud and AI businesses.
- Diversified Investment Strategy: The Department will also allocate up to $100 million per company for firms like Atom Computing and D-Wave, aiming to drive market expansion through diversified investments, even as the quantum computing market remains speculative.
- Optimistic Market Outlook: According to Grand View Research, the global quantum computing market is expected to grow at a 20.5% CAGR from 2025 to 2030, and the new investments could accelerate this growth, pushing quantum computing technology into broader applications.
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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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- 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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- 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.
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