NEW YORK, May 22, 2026 — International Business Machines Corp. (IBM) saw its shares climb sharply on Thursday, closing at $252.97 after the company and the U.S. Commerce Department unveiled plans for a substantial $1 billion award aimed at establishing a new quantum-chip foundry. The stock's 12.4% gain from the previous close of $225.00 was accompanied by a surge in trading activity, with 25.5 million shares changing hands—more than five times Wednesday's volume, according to historical data.
The proposed funding, part of the CHIPS and Science Act initiative, is designated for Anderon, a newly formed entity that will operate a 300-millimeter quantum wafer foundry in Albany, New York. This facility is expected to supply IBM and other customers with advanced quantum chips, a technology that leverages qubits—units capable of existing in multiple states simultaneously—to solve complex problems in fields like materials science, drug discovery, and finance.
Government Commitment and Industry Impact
Washington's move signals a strategic push to reduce reliance on foreign technology and accelerate domestic quantum computing capabilities. The Commerce Department has signed letters of intent totaling approximately $2 billion for nine companies, acquiring non-controlling equity stakes in each. Commerce Secretary Howard Lutnick stated that these investments are projected to create "thousands of high-paying American jobs." IBM CEO Arvind Krishna emphasized that Anderon could "fuel America's fast-growing quantum technology industry," adding that the foundry will offer IBM's chipmaking technology to external clients, giving them "the exact same capability that we have for ourselves."
The news rippled through the quantum computing sector. GlobalFoundries announced the launch of Quantum Technology Solutions and signed a letter of intent for a proposed $375 million award, with the Commerce Department receiving about 1% ownership. Chief technology officer Gregg Bartlett noted that "quantum is at its inflection point." Other firms, including D-Wave and Rigetti Computing, were also part of the government's plan, underscoring a competitive landscape where IBM's scale and balance sheet provide a distinct advantage over smaller pure-play quantum companies.
Market Context and Investor Sentiment
IBM's rally came after a challenging period; the stock had declined in April when first-quarter revenue growth slowed, with concerns that AI tools could cannibalize its software business. CFRA analyst Brooks Idlet told Reuters that those fears were not supported by the data at the time, but caution persisted. Thursday's move reflects renewed optimism, though investors acknowledge execution risks. The award remains contingent on final definitive agreements, and quantum computing still faces technical hurdles, including high error rates that limit real-world performance.
The broader market also responded positively. The Dow Jones Industrial Average rose 0.55%, aided by IBM's strong performance, while the S&P 500 gained 0.17% and the Nasdaq added 0.09%. IBM's high price in the price-weighted Dow amplified its impact on the index.
Forward Outlook and Risks
IBM plans to invest $1 billion in cash into Anderon, supplemented by intellectual property, assets, and staff. Commerce funding will support research and development. However, the deal's closure depends on successful contract negotiations. A slowdown in talks, waning interest in the foundry, or a pullback in quantum-related stocks could quickly reverse Thursday's gains.
U.S. stock markets will operate regular hours on Friday before closing for Memorial Day on Monday, May 25. Investors will be watching to see if Anderon evolves into a tangible manufacturing story or remains a topic of speculative quantum enthusiasm.
