TLDR
- IBM has finalized a $1 billion R&D grant from the U.S. Commerce Department to build Anderon, America’s first quantum chip foundry.
- Anderon will operate as an IBM subsidiary, located in upstate New York, using 300-millimeter wafer technology.
- IBM has pledged an additional $1 billion of its own to support Anderon, with Mukesh Kare named as CEO.
- IBM’s most recent quarterly EPS came in at $2.93, matching estimates, though revenue of $17.16 billion missed forecasts of $17.46 billion.
- Analysts hold a consensus “Moderate Buy” on IBM with an average price target of $265.16; the stock opened at $248.39 on Wednesday.
IBM stock dipped 0.3% in early trading Wednesday as the company formally sealed a $1 billion deal with the U.S. Commerce Department to build the country’s first quantum chip foundry.
International Business Machines Corporation, IBM
The facility, called Anderon, is structured as a research-and-development grant under the 2022 Chips and Science Act. IBM is also putting up $1 billion of its own money to back the project.
Anderon will operate as an IBM subsidiary out of upstate New York. The 300-millimeter wafer foundry will serve IBM as one of several customers, with interest from companies like D-Wave already confirmed.
Mukesh Kare, currently IBM’s semiconductor division general manager, has been named Anderon’s CEO. He said the facility would move quantum computing “from research breakthroughs to real-world impact.”
IBM Research chief Jay Gambetta had said back in May the company needed a “reliable baseline fab” to design a new quantum processor every year. Anderon is that facility.
Part of a Broader Federal Push
The Anderon deal is part of a wider $2 billion federal funding package. Last week, Rigetti Computing, D-Wave Quantum, and Quantinuum each received $100 million deals from the Commerce Department. Chipmaker GlobalFoundries also landed a $375 million pact to build out domestic manufacturing.
The government’s push into quantum mirrors its earlier involvement in semiconductors and critical minerals. DARPA is separately running a validation program aimed at building an error-corrected, utility-scale quantum computer by 2033.
IBM also has a target on its own books: delivering a fault-tolerant quantum computer to a national laboratory by 2028, though that goal remains uncertain.
IBM Fundamentals and Analyst View
IBM opened at $248.39 on Wednesday. Its 50-day moving average sits at $234.72, and the 200-day average is $246.74. The stock’s 52-week range runs from $199.19 to $332.46.
The company’s most recent quarterly earnings hit $2.93 EPS, matching Wall Street’s estimate. Revenue came in at $17.16 billion, up 1.1% year over year, but short of the $17.46 billion forecast.
IBM pays a quarterly dividend of $1.69, representing a 2.7% annualized yield. The payout ratio stands at 59.98%.
Institutional investors own 58.96% of IBM. HighTower Advisors increased its stake by 27.8% in Q2, adding 372,987 shares to bring its total holding to 1.72 million, worth around $482.6 million.
On the other side, SVP Robert Thomas sold 25,000 shares on August 26th at $230.32, cutting his ownership by 34.34%. Insiders collectively hold just 0.27% of the stock.
Seventeen analysts rate IBM a Buy, ten say Hold, and one says Sell. The average price target is $265.16, with Bank of America setting the high end at $330.
IBM stock opened at $248.39 Wednesday, trading below the analyst consensus target as the Anderon announcement failed to move the needle in early trading.
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