Overview
- Markets reacted to two coordinated developments on June 23 when JPMorgan upgraded IBM to Overweight with a $291 price target and the White House announced executive orders backing quantum work, sending shares up roughly 3–5 percent.
- JPMorgan’s upgrade rests on an expectation of software acceleration as software now drives about 45 percent of IBM’s revenue and roughly two thirds of its profit, which the bank says could lift recurring margins and valuation multiples.
- The White House orders set a goal for a research‑grade quantum computer by 2028 and require federal agencies to move to post‑quantum cryptography by 2031, and President Trump publicly praised IBM CEO Arvind Krishna at the signing.
- IBM reinforced the commercial narrative by pledging roughly $10 billion to quantum research and manufacturing over five years and announcing new AI work, including joining OpenAI’s Daybreak Cyber Partner Program and launching an AI application‑security service.
- Investors are watching IBM’s Q2 earnings on July 22 for concrete signs of software and AI revenue acceleration and for any progress or timeline updates on its Starling quantum system that could convert policy enthusiasm into measurable results.