IBM shares hit record high as US government proposes $1 billion quantum foundry award
Shares of IBM closed at a record $297.80 on 29 May 2026, following a 13% weekly rally triggered by the US Department of Commerce’s CHIPS Act proposal.
IBM shares reached a record close of $297.80 on 29 May 2026, extending a 13% weekly gain that began after the US Department of Commerce announced a proposed $1 billion CHIPS Act award. The funding is designated for the establishment of a purpose-built quantum chip foundry in Albany, New York, operated through a new standalone entity named Anderon. The announcement coincided with the resurfacing of remarks made by President Donald Trump in December 2025, where he praised IBM chief executive Arvind Krishna as a "legend" and described the company’s stock performance as a "very nice price."
The proposed federal incentive forms the largest component of a broader $2.01 billion package distributed across nine companies. In exchange for the funding, the US government will take minority, non-controlling equity stakes in the recipient firms. While GlobalFoundries confirmed a 1% government stake in its spinoff, IBM’s announcement regarding Anderon did not disclose a specific equity stake for the new entity. The broader package also includes allocations for GlobalFoundries, Atom Computing, D-Wave, Infleqtion, PsiQuantum, Quantinuum, Rigetti, and Diraq.
IBM is matching the proposed federal award with $1 billion of its own capital, alongside intellectual property and workforce contributions. The company also outlined plans to invest more than $10 billion in quantum computing over five years and a separate $5 billion push in Red Hat cybersecurity. The market reacted swiftly, with IBM shares closing up approximately 12% on 21 May, marking the stock’s biggest single-day gain since January 2025.
Analyst sentiment remains divided as the stock trades above the consensus 12-month price target of $278. Wedbush analyst Dan Ives reiterated an "outperform" rating with a $320 target on 29 May, citing accelerating enterprise AI adoption. Conversely, UBS maintains a "sell" rating with a $200 target, with some valuation models suggesting the stock is roughly 20% overvalued at current levels. The wide spread in price targets, ranging from $195 to $335, highlights the uncertainty surrounding whether the quantum windfall will translate into durable returns or remain a sentiment-driven rally.
The news cycle also drew attention to President Trump’s recent trading activity. A periodic transaction report filed with the US Office of Government Ethics on 8 May revealed eight IBM transactions between February and March 2026. The filings listed four purchases and four sales, all within the $1,001 to $50,000 reporting bands, with two purchases tagged as unsolicited. The White House has stated that Trump’s assets are managed by his children, and no improper timing is alleged regarding the trades.
