The federal quantum funding initiative, which was announced on May 21, has pushed quantum-related stocks significantly higher. Among the beneficiaries, International Business Machines Corporation IBM stands out. The stock has gained 26.7% since the announcement. With accelerating federal support, growing commercialization efforts and enterprise adoption gathering pace, IBM appears well positioned to extend its gains through 2026. Let’s delve deeper.
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Quantum Computing: A National Strategic Priority in 2026
The U.S. government proposed approximately $2.01 billion in CHIPS and Science Act incentives for nine quantum-related companies on May 21, marking one of the largest federal commitments to the sector to date. The initiative reflects Washington's growing focus on quantum computing as a strategic technology with applications spanning national security, artificial intelligence, advanced manufacturing, drug discovery and financial modeling.
IBM emerged as the largest beneficiary of the program, securing a proposed $1 billion award to establish a quantum foundry dedicated to manufacturing quantum-grade superconducting wafers in the United States. The second-largest award went to GlobalFoundries GFS, which received $375 million to build a secure domestic quantum-manufacturing ecosystem supporting multiple quantum-computing modalities.
The investment is intended to strengthen domestic quantum supply chains and expand the nation's advanced computing infrastructure.
IBM Accelerates Quantum Commercialization Efforts
A major strategic statement from IBM quickly followed the proposed federal backing. On May 28, the company announced plans to invest more than $10 billion in quantum computing over the next five years, one of the largest private-sector commitments within this niche to date. The investment will support research and development, manufacturing scale-up, capital expenditures, ecosystem partnerships and strategic acquisitions aimed at accelerating quantum commercialization.
The company reaffirmed its goal of delivering IBM Quantum Starling, the world's first large-scale fault-tolerant quantum computer, by 2029. According to IBM, Starling is expected to operate with 200 logical qubits and execute up to 100 million quantum operations, representing a significant leap beyond the capabilities of today's quantum systems. The company believes such a machine could unlock practical applications that are beyond the reach of classical computers.
IBM's quantum ecosystem now includes more than 325 organizations spanning enterprises, startups, universities and government agencies. The company also operates more than 90 quantum systems worldwide, providing a strong platform for developing commercial applications across industries.
Supporting these efforts is Anderon, IBM's planned U.S.-based quantum foundry. Together with advances in quantum error correction and scalable system design, the initiative is intended to strengthen U.S. leadership in next-generation computing.
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Estimates for IBM’s 2026 earnings have improved by 2 cents to $12.40 per share over the past 30 days, suggesting a 7% increase over the 2025 reported figure. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Investors' Stance
IBM offers investors a relatively balanced way to gain exposure to the quantum-computing theme. The company is benefiting from substantial federal support, an ambitious $10 billion quantum investment plan and improving earnings expectations. Notably, 2026 earnings estimates have edged higher over the past month, reflecting growing confidence in the company's outlook.
While the stock currently suggests limited near-term upside, IBM's growing expansion in quantum infrastructure and commercialization efforts could support long-term growth. Investors may consider holding the stock as a lower-risk alternative to more speculative pure-play quantum companies.
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This article originally published on Zacks Investment Research (zacks.com).