IBM Shares Surge 10% on $350 Target, $1B Quantum Foundry Grant
IBM•Shares rose 10% after Barclays initiated coverage with an Overweight rating and $350 price target citing its resilient software unit and steady infrastructure software demand. IBM matched a $1B Commerce Department quantum foundry grant and pledged over $10B for quantum computing and $5B for software security through 2031.
1. Barclays Initiates Coverage and Shares Rally
Barclays began coverage of IBM with an Overweight rating and set a $350 price target, citing the company’s resilient software unit—which generates about half of revenue—and steady demand in infrastructure software. The announcement propelled shares up 10% on the day, underlining investor confidence in IBM’s enterprise technology portfolio.
2. Quantum Foundry Grant and Long-Term Investments
IBM secured a $1B grant from the Commerce Department for a quantum chip foundry, matched by a $1B contribution in cash and assets to the joint venture. The company also unveiled plans to invest over $10B in quantum computing and $5B in open-source software security through 2031 to strengthen its technology leadership.
