Key facts
- President Donald Trump praised IBM CEO Arvind Krishna and the company's stock in a December 2025 White House event.
- IBM announced a proposed $1 billion U.S. government award to build America's first quantum chip foundry.
- IBM is investing over $10 billion in quantum computing and $5 billion in cybersecurity over five years.
- IBM shares surged approximately 13% in the week following the quantum foundry announcement.
- Trump's trust engaged in routine buying and selling of IBM stock between February and March 2026.
President Donald Trump has acknowledged a past mistake in selling IBM stock, while simultaneously expressing optimism about the company's future in quantum computing. A video clip from a December 2025 White House business roundtable, where Trump called IBM CEO Arvind Krishna 'a legend' and praised the stock's performance, resurfaced in late May 2026, coinciding with significant developments for the tech giant.
On May 21, 2026, IBM and the U.S. Department of Commerce announced a proposed $1 billion award under the CHIPS Act to establish America's first dedicated quantum chip foundry. This new entity, to be named Anderon and headquartered in Albany, New York, will be a standalone IBM company. IBM is set to match the federal funding with its own $1 billion investment, alongside contributing intellectual property and workforce resources. This award represents the largest portion of a broader $2.01 billion package allocated by the Commerce Department to nine different companies.
Investors reacted positively to the news, with IBM shares experiencing their largest single-day gain since January 2025, closing up approximately 12% on May 21. The rally continued into the following week, with IBM stock reaching $297.80 by the May 29 close, a weekly increase of about 13%. This surge was further fueled by IBM's disclosure of plans to invest more than $10 billion in quantum computing over the next five years and an additional $5 billion for a Red Hat cybersecurity initiative.
Analysis of the stock's performance suggests that while the resurfaced Trump video may have acted as a spark, substantive corporate news was the primary driver. IBM's shares had already risen approximately 41% from a May 13 low before the video gained traction. This prior rally was attributed to IBM's confirmation as a system-building and storage partner for Nvidia's Vera Rubin AI platform.
Records from Trump's Q1 2026 periodic transaction report, filed on May 8, indicate that IBM holdings were part of routine trading activity within his trust. The filing detailed eight IBM transactions between February and March 2026, comprising four purchases and four sales, all within the smallest reporting bands ($1,001 to $50,000). Some purchases were tagged as 'unsolicited,' suggesting trades initiated by a money manager. This activity reflects a broadly managed portfolio rather than a concentrated bet on IBM.