On Thursday, IBM's stock experienced a notable increase, adding approximately $26 billion to its market capitalization after the U.S. Department of Commerce announced over $2 billion in federal grants under the CHIPS and Science Act. IBM received the largest share of this funding, securing $1 billion, which could act as a catalyst for reversing its year-to-date decline of 13%.
This development positions IBM as a key player in the domestic deep-tech sector. Beyond quantum computing, IBM is also enhancing its technology portfolio by launching new AI services on its cloud platform and expanding its partnership with Oracle to integrate its watsonx AI offerings.
An analyst suggests a bullish strategy using options to capitalize on potential gains, including a call spread that costs $2 with the possibility of capturing $48 in upside if IBM's stock rises from $277 to $325. Investors should be prepared for the risk of owning IBM if the stock falls below $240 by the expiration of the options in about two months