Shares of IBM rose sharply on Tuesday after President Donald Trump publicly praised the technology company and its CEO during a White House quantum technology summit.
IBM stock gained more than 3% in premarket trading before extending its advance during the regular session. The positive reaction followed Trump’s comments at a signing ceremony focused on strengthening the United States’ position in quantum computing.
Trump Praises IBM CEO Arvind Krishna
During the White House event, Trump highlighted IBM CEO Arvind Krishna and praised his leadership of the company.
The president described Krishna as a “great man” who was doing an excellent job, drawing attention to IBM in front of several leading figures from the technology and scientific communities.
Trump also reflected on his previous ownership of IBM shares. He joked that he had purchased the stock at much lower levels but sold his holdings after becoming president.
According to Trump, selling the shares turned out to be a poor financial decision as IBM stock later climbed significantly.
White House Targets US Quantum Leadership
Although Trump’s comments helped lift IBM shares, the central purpose of the summit was to accelerate American development of quantum computing, advanced sensors and next-generation communication networks.
Trump signed two executive orders designed to support domestic quantum infrastructure and protect federal computer systems from future cybersecurity threats.
Five-Year Quantum Computing Initiative
The first executive order establishes a government-supported programme aimed at developing a fully operational quantum computer within five years.
The initiative also seeks to advance quantum-enabled networks and sensors capable of supporting complex scientific calculations and strategic national applications.
The administration hopes the programme will strengthen US competitiveness as governments and technology companies invest heavily in quantum research.
Federal Agencies Face 2031 Security Deadline
The second executive order requires federal agencies to transition their computer systems to post-quantum cryptography by 2031.
Post-quantum encryption is designed to protect sensitive information from quantum computers that could eventually break many of today’s widely used security systems.
The deadline represents an important step in preparing government networks for potential quantum-based cybersecurity risks.
Technology Leaders Attend Quantum Summit
The White House gathering brought together prominent executives, scientists and quantum technology specialists.
Alongside IBM CEO Arvind Krishna, attendees included Google President Ruth Porat, Inflection CEO Matthew Kinsella and Nobel Prize-winning quantum physicist John Martinis.
Their participation highlighted the growing strategic importance of quantum technology to the US government and the wider technology industry.
Trump Highlights Previous Quantum Investment
Before signing the new executive orders, Trump referred to the National Quantum Initiative Act, which was introduced during his first administration in 2018.
The legislation created a coordinated federal strategy for quantum research and contributed to a significant increase in government investment in domestic quantum development.
The latest measures are intended to build on that foundation by establishing clearer infrastructure, security and development targets.
JPMorgan Upgrades IBM Stock
IBM shares received additional support after JPMorgan upgraded the stock to Overweight on Tuesday.
The bank raised its IBM price target from $270 to $291, citing greater confidence in the company’s software growth prospects.
JPMorgan analysts believe IBM’s valuation could expand if the company gains further traction as a major beneficiary of artificial intelligence infrastructure spending.
They also identified IBM’s progress toward developing a fault-tolerant quantum computer as a potential catalyst for the stock.
A more favourable timeline for achieving that milestone could strengthen investor confidence in IBM’s long-term position within the quantum computing industry.
IBM Gains Attention From AI and Quantum Growth
IBM is increasingly attracting investor interest because of its exposure to software, artificial intelligence infrastructure and quantum computing.
Trump’s public endorsement created an immediate market catalyst, while the JPMorgan upgrade provided a more fundamental reason for investors to reassess the company’s growth potential.
IBM’s ability to convert its technological expertise into stronger revenue and earnings growth will remain an important factor for the stock’s future performance.
