IBM invests $10B in quantum computing as sector stocks surge

The US quantum computing sector entered a new phase Thursday as IBM committed $10 billion to build the first error-corrected quantum computer by 2029, triggering a broad rally across pure-play stocks.

The US government's $2 billion funding commitment and IBM's $10 billion investment plan pushed quantum computing stocks sharply higher on Thursday, signaling a shift from laboratory research toward commercial manufacturing.

"This is the moment quantum moves from science project to industrial-scale manufacturing," a senior Commerce Department official involved in the funding allocation said, speaking on condition of anonymity.

IBM will contribute $1 billion to launch Alderon, described as America's first pure-play quantum chip foundry, with the Commerce Department providing an additional $1 billion. GlobalFoundries received $375 million to develop its own quantum business, QuantumTechnology Solutions. Seven smaller pure-play quantum companies, including D-Wave Quantum, Infleqtion and Rigetti Computing, also received equity investments from the government.

The investments aim to secure US leadership in quantum computing as China accelerates its own quantum programs. Alphabet CEO Sundar Pichai said last year that practically useful quantum computers remained five to 10 years away, but the infusion of government and corporate capital could compress that timeline.

Alderon Foundry Marks US Manufacturing Push

IBM shares rose 4 percent on Thursday, while IonQ gained 12.24 percent to close at $58.89 on volume 103 percent above its three-month average. D-Wave Quantum surged 33.37 percent and Rigetti Computing added 30.57 percent as investors rotated into high-growth quantum names. Infleqtion jumped 31.5 percent.

The rally extended beyond pure-play names. The S&P 500 edged up 0.17 percent to 7,445.72, while the Philadelphia Semiconductor Index gained 1.28 percent, led by Arm Holdings and GlobalFoundries. The Russell 2000 outperformed with a 0.93 percent gain, reflecting broad-based interest in emerging technology exposure.

IBM has deployed more than 90 quantum systems to date, more than all other industry players combined, according to a Securities and Exchange Commission filing. Over 325 Fortune 500 companies, startups, universities and government agencies use its quantum systems for challenges in chemistry, biology and materials science.

IonQ, which went public in 2021 and has grown 445 percent since its IPO, posted record first-quarter revenue of $64.7 million and raised its 2026 revenue outlook to between $260 million and $270 million. Its remaining performance obligations stand at about $470 million. The company's planned acquisition of SkyWater would give it greater control over semiconductor manufacturing and packaging for its quantum hardware — a vertical integration strategy that mirrors IBM's Alderon approach.

For investors, the question is whether government backing can accelerate quantum's commercial timeline. IonQ trades at a significant premium to traditional semiconductor valuations, reflecting the optionality embedded in quantum stocks. D-Wave and Rigetti, both recipients of direct government funding, saw the largest percentage gains, suggesting the market is pricing in a funding-driven de-risking of their technology roadmaps. Major technical hurdles remain — high error rates continue to limit practical quantum applications — but the combination of corporate and government capital represents the strongest signal yet that quantum computing is transitioning from theoretical promise to industrial reality.

This article is for informational purposes only and does not constitute investment advice.