IBM said Monday that it will invest $150 billion in the U.S. over the next five years. IBM stock closed the day higher.
The $150 billion pledge includes $30 billion for research and development for manufacturing mainframe and quantum computers in Poughkeepsie, N.Y. The 114-year-old tech giant said more than 70% of global transactions run through mainframes manufactured by IBM in America. The company is also focused on developing quantum computers in the U.S.
IBM joins Apple, Nvidia and Taiwan Semiconductor Manufacturing in announcing U.S. spending pledges in the weeks following President Donald Trump's tariff announcement.
IBM last year spent $7.5 billion on research and development, according to the company's Q4 earnings report published in January. IBM generated $12.7 billion in free cash flow last year and is projecting $13.5 billion in free cash flow for 2025.
On the stock market today, IBM stock gained 1.6% to close at 236.16.
IBM Stock Is Up 8% This Year
IBM shares have gained 8% so far this year, compared to the S&P 500 falling 6% year-to-date. However, IBM stock tumbled 6.5% following its first quarter earnings report late last week, which included a slowdown for its software growth. The fall pushed IBM stock below its 5o-day and 21-day moving averages.
During a call with analysts following the Q1 report, IBM's leadership said the company expected minimal impact from U.S. tariffs on imports. The company has had some government contracts cut by the DOGE initiative, however.
Investors have historically turned to IBM as a "safe haven" during previous economic slowdowns. Some analysts believe that trend will allow IBM to outperform the market in its current struggles.
"Despite seeing significant pressure that may impact discretionary projects for IBM products and services, we believe that IBM is well-positioned to navigate the macro storm and capitalize on the current demand shift for hybrid and AI applications with more enterprises looking to implement AI for productivity gains and drive long-term profitable growth," Wedbush analyst Daniel Ives wrote Thursday.
