synopsis

The $150 billion investment will include more than $30 billion in research and development to advance and continue IBM's American manufacturing of mainframe and quantum computers.

International Business Machines Corporation (IBM) announced on Monday that it plans to invest $150 billion in the U.S. over the next five years, to boost technology growth and push manufacturing, weeks after President Donald Trump announced heavy levies on imports into the country.

The investment will include more than $30 billion in research and development to advance and continue IBM's American manufacturing of mainframe and quantum computers, the company said.

IBM CEO Arvind Krishna said that the company has been focused on American jobs and manufacturing since its founding over a century ago.

“...with this investment and manufacturing commitment, we are ensuring that IBM remains the epicenter of the world's most advanced computing and AI capabilities," Krishna said.

IBM has a facility in Poughkeepsie, New York, where it manufactures mainframes. More than 70% of the entire world's transactions by value run through IBM mainframes, which are manufactured in America, the company said.

IBM will also continue to design, build, and assemble quantum computers in America, it added. The firm, however, did not detail its expansion plans further.

Earlier this month, IBM reported its first-quarter results with revenue rising 1% year-over-year (YoY) to $14.5 billion, supported by an increase in software revenue, offset by a decline in infrastructure revenue.

The company’s adjusted earnings per share (EPS) for the quarter came in at $1.6, above an analyst estimate of $1.43.

“There continues to be strong demand for generative AI, and our book of business stands at more than $6 billion inception-to-date, up more than $1 billion in the quarter," Krishna had said.

The company expects second-quarter revenue to be in the range of $16.40 billion to $16.75 billion, in line with an analyst estimate of $16.58 billion, as per Finchat data.

IBM continues to expect full-year constant currency revenue growth of at least 5%.

IBM stock has gained about 7% this year and nearly 41% over the past 12 months.

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