Catenaa, Monday, April 28, 2025- IBM will invest $150 billion in the US for the next five years, the company said on Monday, in a push to back Trump’s local manufacturing.
IBM said that the plan includes an investment of more than $30 billion in research and development to further the company’s American manufacturing of quantum computers
The company’s announcement on Monday follows similar pledges by tech giants such as Nvidia and Apple, both of which have said they would spend about $500 billion each in the country over the next four years.
The company operates one of the world’s largest fleets of quantum computing systems, which promise to offer performance thousands of times more powerful than traditional computers.
Recent breakthroughs in quantum computing, including a new generation of chips announced by Alphabet’s Google in December, have driven up interest in the sector, though executives remain divided on when the technology will have real-world applications.
Google aims to release commercial applications in five years, while Nvidia’s CEO Jensen Huang predicts a 20-year wait for practical uses.
IBM said last week 15 of its government contracts were shelved under a cost-cutting drive by the Trump administration, a setback that eclipsed its upbeat June-quarter revenue forecast and sent its shares lower.
The company recorded a revenue of $14.5 billion in the first quarter, up by 1% year on year, its Software revenue went up by 7% and Infrastructure revenue down by 6%.
IBM expects a full-year constant currency revenue growth of at least 5% and second-quarter revenue to be in the range of $16.40 billion to $16.75 billion.
IBM stock was up by 1.3% after 2 hours into trading on Monday following the investment plan reports.
