What's Going On With IBM Stock Wednesday?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 14 2024
0mins
Source: Benzinga
IBM's Post-Quantum Cryptography Standards: IBM shares rose after the company announced that two of its algorithms were included in the first three post-quantum cryptography standards released by NIST, marking a significant step towards securing data against future quantum computing threats.
Conservation Partnership with WWF: IBM is collaborating with the World Wide Fund For Nature to develop an AI solution for tracking critically endangered African forest elephants, enhancing conservation efforts and promoting sustainability through improved monitoring techniques.
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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: 252.970
Low
210.00
Averages
315.80
High
375.00
Current: 252.970
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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- Dividend Growth Continues: IBM raised its dividend for the 31st consecutive year in 2026, demonstrating long-term stability among large-cap stocks, which attracts income-focused investors and enhances market confidence in its future cash flows.
- Significant Revenue Growth: In Q1 2026, IBM's total revenue grew 9.5% year-over-year to $15.9 billion, with software revenue increasing by 11.3% and infrastructure revenue by 15.3%, indicating substantial progress in its AI and hybrid cloud strategy.
- Strong AI Platform Performance: IBM's watsonx platform and related business exceeded $1.5 billion in revenue over the trailing twelve months, driving software annual recurring revenue to $24.6 billion, a 10% year-over-year increase, showcasing its competitiveness in the enterprise market.
- Long-Term Growth Outlook: IBM expects to achieve over 5% revenue growth and around 10% software growth in 2026, with free cash flow projected to increase by $1 billion year-over-year, illustrating a solid balance between stable growth and dividend returns.
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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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- Investment Overview: The U.S. government plans to allocate over $2 billion in incentives and investments to nine quantum computing companies under the CHIPS and Science Act, with IBM's startup Anderon set to receive $1 billion, matched by IBM's own investment, highlighting the government's commitment to the quantum computing sector.
- 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.
- Technological Leadership: IonQ boasts a record 99.99% two-qubit gate fidelity, positioning it as a leader in quantum computing technology; despite not receiving government investment, its acquisition of SkyWater Technology will make it the only vertically integrated quantum computing company in the U.S., expected to enhance market responsiveness and scaling advantages.
- Market Opportunities: Although IonQ was overlooked for government investment, its stock still holds potential for appreciation, especially as the surge in government funding for quantum initiatives increases market focus on the best quantum computing companies, potentially providing investors with attractive buying opportunities.
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.
- 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.
- City Expansion Strategy: IBM is expanding into tier-two cities like Kochi and Lucknow, with Kochi's workforce growing to nearly 4,000 in two years, a strategy that helps tap talent beyond saturated tech hubs and drives further business growth.
See More
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- Market Growth Potential: Grand View Research forecasts that the global quantum computing market will expand at a 20.5% CAGR from 2025 to 2030, indicating significant commercial application prospects, particularly in AI processing, supply chain optimization, and cybersecurity.
- 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, including substantial investments in IBM and GlobalFoundries, which are expected to drive growth in their quantum computing businesses.
- IBM Business Diversification: IBM is set to receive $1 billion for building new quantum computing foundries, further enhancing its hybrid cloud and AI business expansion, thereby offsetting the slower growth of its traditional software and hardware sectors.
- Support for Emerging Competitors: The Department of Commerce will allocate up to $100 million for companies like Atom Computing, D-Wave, Infleqtion, PsiQuantum, Quantinuum, and Rigetti, aiming to foster diverse investments that could propel the quantum computing market's growth beyond its current niche.
See More
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- 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.
See More
IBM: Stable Dividends and AI Growth Coexist
- Dividend Growth Continues: IBM raised its dividend for the 31st consecutive year in 2026, demonstrating long-term stability among large-cap stocks, which attracts income-focused investors and enhances market confidence in its future cash flows.
- Significant Revenue Growth: In Q1 2026, IBM's total revenue grew 9.5% year-over-year to $15.9 billion, with software revenue increasing by 11.3% and infrastructure revenue by 15.3%, indicating substantial progress in its AI and hybrid cloud strategy.
- Strong AI Platform Performance: IBM's watsonx platform and related business exceeded $1.5 billion in revenue over the trailing twelve months, driving software annual recurring revenue to $24.6 billion, a 10% year-over-year increase, showcasing its competitiveness in the enterprise market.
- Long-Term Growth Outlook: IBM expects to achieve over 5% revenue growth and around 10% software growth in 2026, with free cash flow projected to increase by $1 billion year-over-year, illustrating a solid balance between stable growth and dividend returns.
See More
U.S. Government Invests Over $2 Billion in Quantum Computing
- Government Investment Plan: The U.S. government plans to provide over $2 billion in incentives and investments to quantum computing companies under the CHIPS and Science Act, including equity stakes in several firms, highlighting its commitment to boosting domestic chip manufacturing.
- 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
U.S. Government to Invest in Quantum Computing Firms
- Investment Overview: The U.S. government plans to allocate over $2 billion in incentives and investments to nine quantum computing companies under the CHIPS and Science Act, with IBM's startup Anderon set to receive $1 billion, matched by IBM's own investment, highlighting the government's commitment to the quantum computing sector.
- 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.
- Technological Leadership: IonQ boasts a record 99.99% two-qubit gate fidelity, positioning it as a leader in quantum computing technology; despite not receiving government investment, its acquisition of SkyWater Technology will make it the only vertically integrated quantum computing company in the U.S., expected to enhance market responsiveness and scaling advantages.
- Market Opportunities: Although IonQ was overlooked for government investment, its stock still holds potential for appreciation, especially as the surge in government funding for quantum initiatives increases market focus on the best quantum computing companies, potentially providing investors with attractive buying opportunities.
See More
India Requires Coordinated Push for AI Skills Development
- 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.
- City Expansion Strategy: IBM is expanding into tier-two cities like Kochi and Lucknow, with Kochi's workforce growing to nearly 4,000 in two years, a strategy that helps tap talent beyond saturated tech hubs and drives further business growth.
See More
U.S. Government Increases Investment in Quantum Computing
- Market Growth Potential: Grand View Research forecasts that the global quantum computing market will expand at a 20.5% CAGR from 2025 to 2030, indicating significant commercial application prospects, particularly in AI processing, supply chain optimization, and cybersecurity.
- 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, including substantial investments in IBM and GlobalFoundries, which are expected to drive growth in their quantum computing businesses.
- IBM Business Diversification: IBM is set to receive $1 billion for building new quantum computing foundries, further enhancing its hybrid cloud and AI business expansion, thereby offsetting the slower growth of its traditional software and hardware sectors.
- Support for Emerging Competitors: The Department of Commerce will allocate up to $100 million for companies like Atom Computing, D-Wave, Infleqtion, PsiQuantum, Quantinuum, and Rigetti, aiming to foster diverse investments that could propel the quantum computing market's growth beyond its current niche.
See More
U.S. Plans $2 Billion Investment in Quantum Computing
- 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.
See More
