IBM shares moved higher on Thursday after the company introduced a $15 billion investment strategy focused on cybersecurity and quantum computing. The announcement pushed International Business Machines Corp. (NYSE: IBM) stock up more than 3%, with shares trading near $264 during the session.
Analysts at Wedbush said the latest move could help secure IBM’s long-term position as businesses face rapid shifts in artificial intelligence and digital security.
IBM Expands Cybersecurity Efforts With Red Hat
A major part of the investment includes “Project Lightwell,” a new cybersecurity initiative developed alongside Red Hat. IBM committed $5 billion to the project, which aims to strengthen open-source software security through AI-powered tools and enterprise services.
The company plans to assign 20,000 engineers to support organizations with software patch creation, dependency protection, release engineering, and AI-assisted vulnerability management. IBM also confirmed plans to build an open-source security clearinghouse.
The platform will help companies detect vulnerabilities, apply verified patches, and manage coordinated software disclosures across broader ecosystems.
Wedbush noted that concerns around advanced AI systems and open-source software risks continue to grow across industries. According to the firm, Project Lightwell aligns with IBM’s wider AI and security strategy while helping enterprises secure modern infrastructure.
Quantum Computing Push Targets 2029 Milestone
IBM also revealed a separate $10 billion investment plan dedicated to quantum computing over the next five years. The funding will support research, manufacturing, capital expenditures, acquisitions, and ecosystem partnerships.
The company stated that the goal is to introduce its first fault-tolerant quantum computer by 2029. The announcement arrives shortly after the US Department of Commerce awarded IBM $1 billion in funding to support the development of an American quantum chip foundry.
Wedbush highlighted IBM’s strong position in the quantum sector, noting that the company has already developed more than 90 quantum systems. IBM also maintains partnerships with over 65% of Fortune 500 companies, along with universities, startups, and government agencies.
The firm added that IBM’s role across both AI and quantum computing remains “underappreciated.”
Wedbush maintained its “Outperform” rating on IBM shares and repeated its $320 price target following the announcement. The investment strategy signals IBM’s focus on software security, AI infrastructure, and next-generation computing technologies at a time when businesses continue to increase spending on digital protection and advanced computing systems.
