Why IBM Stock Jumped 5.3% This Morning
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Shares of IBM (IBM +2.46%) surged as much as 5.3% higher on Thursday morning, peaking around 10 a.m. ET. Two hours later, Big Blue's stock is up by 4%, adding $10.0 billion to the tech stock's market value. The company is making significant investments in quantum computing and open-source software. The quantum news did most of the market-moving work today, but I'm honestly just as excited about the software news. Image source: Getty Images. IBM puts $15 billion where its mouth is In a financial filing, IBM laid out a five-year plan for quantum computing investments. The company will deploy "more than $10 billion" in several parts of the quantum ecosystem, ranging from research efforts to buyouts. The core goal is to build "the first large-scale fault-tolerant quantum computer" before the calendar turns to 2030. Meanwhile, IBM and its Red Hat subsidiary just launched Project Lightwell, a $5 billion initiative that pairs over 20,000 engineers with AI to secure the open source software supply chain. Lightwell provides companies with a central clearinghouse to find, test, and fix vulnerabilities in open-source code. Open-source software rarely sees billion-dollar budget boosts, but Lightwell's security support could mark a new era of interest and innovation in this space. ExpandNYSE: IBMInternational Business MachinesToday's Change(2.46%) $6.27Current Price$261.47Key Data PointsMarket Cap$240BDay's Range$257.09 - $268.8952wk Range$212.34 - $324.90Volume417.4KAvg Vol6.6MGross Margin57.80%Dividend Yield2.64% Why these announcements feel different I've been covering IBM for years, and "Big Blue makes big bet" headlines come and go. But these two announcements feel different. Quantum computing has been IBM's patient long game for decades. Now there's a $10 billion price tag and a 2029 deadline attached. It's not just a research project anymore. Meanwhile, Project Lightwell tackles a problem most investors don't think about until something breaks. Open-source code is everywhere, and Red Hat has always been a central player. Securing it has been nobody's job in particular. IBM just raised its hand. I'm not ready to call this a reinvention, but it's the clearest strategic vision I've seen from Armonk in a while.Read NextMay 27, 2026 •By Matt Frankel, CFPPrediction: Quantum AI Will Power the Next Wave of Supercomputing -- and This Stock Could Lead ItMay 26, 2026 •By Parkev Tatevosian, CFAIBM Stock Analysis: Buy or Sell?May 26, 2026 •By Daniel SparksThe U.S.
Government Just Bet $2 Billion on 9 Quantum Computing Companies. Here's What It Means for Investors.May 23, 2026 •By Leo SunPrediction: Quantum Computing Is 2026's Most Underrated Tech TrendMay 23, 2026 •By Micah ZimmermanThe AI Stock Retirees Are Adding to Their Portfolios -- and Growth Investors Should, TooMay 22, 2026 •By Eric VolkmanWhy IBM Stock Was Rocking it This WeekAbout the AuthorAnders Bylund is a contributing Motley Fool media and technology analyst covering semiconductors, cloud computing, internet infrastructure, quantum computing, and streaming media. Previously, Anders was a systems administrator for Nielsen Technology and CSX, gaining hands-on experience with enterprise-class systems. He was also a freelance writer for Ars Technica, TIME, USA Today, CNN, WIRED, and AOL's Daily Finance. He holds a bachelor’s degree in English and a master’s degree in library and information sciences from Florida State University. He believes in coyotes and time as an abstract.TMFZahrimX@TMFZahrimStocks MentionedInternational Business MachinesNYSE: IBM$261.22(+2.36%)+$6.02Motley Fool Stock Advisor’s Latest PickGet Access---% Avg Return*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.