U.S. Commerce Department Allocates $2 Billion to Quantum Companies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: NASDAQ.COM
- Funding Scale: The U.S. Commerce Department signed letters of intent to provide approximately $2 billion to nine quantum companies, with IBM set to receive $1 billion for a new quantum chip foundry, indicating strong government backing for the quantum computing sector.
- Market Reaction: Following the announcement, IBM's stock surged about 12%, while smaller quantum firms like D-Wave Quantum, Rigetti Computing, and Infleqtion saw their shares rise over 30%, reflecting investor optimism about the future of quantum technology.
- Quantum Technology Outlook: IBM plans to match the government funding with an additional $1 billion investment to advance its quantum chip foundry in Albany, New York, which is expected to accelerate its long-term strategic roadmap in quantum computing.
- Risks and Opportunities: Despite the significant stock price increases, the financial performance of quantum companies remains weak, with D-Wave reporting only $2.9 million in revenue for Q1, highlighting the high-risk nature of these investments and the need for cautious evaluation of potential returns versus risks.
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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: 250.690
Low
210.00
Averages
315.80
High
375.00
Current: 250.690
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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- Market Reaction: The video published on May 23, 2026, highlights market attention on IBM's revenue growth, potentially attracting more investors to focus on the company's future developments.
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- Market Potential: Although the global quantum computing market is currently around $2 billion, IBM expects to deliver its first large-scale fault-tolerant quantum computer by 2030, with the market projected to grow to $4 billion, and potentially reach $170 billion in the long term, indicating significant growth opportunities.
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- Government Investment Support: IBM has secured a $1 billion federal investment to build the first purpose-built quantum chip foundry in the U.S., which will not only produce IBM's proprietary hardware but also supply advanced quantum chips for the broader tech industry, further solidifying its market position.
See More
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- Intensified Talent Competition: Bengaluru faces dual pressures of talent shortages and rising costs as demand for AI and machine learning skills surges, with some tech roles experiencing annual salary increases of 40% to 50%, threatening India's cost advantage in the sector.
- AI Impact: AI is reshaping work dynamics, enabling increased output without additional headcount, although adoption lags; many firms are reallocating workers to higher-value roles, marking a pivotal moment for India's GCC sector as it adapts to rising costs and global competition.
See More
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- Government Funding Injection: The U.S. Department of Commerce has signed letters of intent to provide approximately $2.01 billion to nine quantum companies, with the government taking minority, non-controlling equity stakes, indicating strong support for the quantum computing sector and potentially accelerating technological advancements.
- Significant Gains for IBM: International Business Machines (IBM) is set to receive $1 billion to build a quantum chip foundry in Albany, New York, matching that with another billion of its own, bringing the total project cost to nearly $2 billion, reflecting its long-term commitment to quantum computing.
- Surge in Smaller Quantum Firms: Smaller quantum companies like D-Wave Quantum, Rigetti Computing, and Infleqtion saw stock prices soar over 30% following the announcement, collectively adding nearly $5 billion in market value, despite their weak financial performance, highlighting the speculative nature of the quantum technology market.
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