Trump signs "Quantum Leap" executive order at the White House, publicly praises IBM CEO, stock price jumps 3% before market open

Eastern Time Monday, Trump signed two quantum computing executive orders at the White House, publicly praising the leadership abilities of IBM CEO Arvind Krishna. IBM’s stock rose 3.26% in pre-market trading. Later that evening, JPMorgan raised IBM’s target price to $291, upgrading its rating from Neutral to Overweight.
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Table of Contents

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• The President’s “concept stock” effect flares up again
• J.P. Morgan follows suit: target price raised to $291
• Core contents of the quantum executive order
• Market outlook: the gap from the executive order to actual revenue

On Monday evening, Trump signed two executive orders on quantum computing at the White House, officially kicking off the U.S. “Quantum Leap” initiative. At the ceremony, he specifically mentioned IBM CEO Arvind Krishna’s leadership, praising his contributions in the field of quantum computing.

After the news was released, IBM’s stock (IBM.US) rose 3.26% in pre-market trading, to $260.44.

The President’s “concept stock” effect flares up again

This is not the first time Trump has influenced the stock market by publicly “calling out” companies. Previously, he had mentioned Dell, which caused that stock to surge more than 14% intraday. A short-term “president concept stock” follow-the-leader effect is gradually taking shape in the market.

At the ceremony, Trump also joked that selling IBM stock “was not a wise choice” when he took office, further reinforcing the market’s positive attention toward this tech giant.

J.P. Morgan follows suit: target price raised to $291

That same evening, JPMorgan Chase (JPMorgan) released a research report, raising IBM’s target price from $270 to $291, upgrading its rating from “Neutral” to “Overweight.”

JPMorgan analysts pointed out that the quantum executive order will accelerate the procurement cycle for enterprise quantum computing. As one of the global pioneers in quantum computing (with more than 1,300 qubits), IBM is one of the biggest beneficiaries.

Core contents of the quantum executive order

The two executive orders signed by Trump include the following key points:

• 2028 goal: The U.S. must achieve breakthroughs in “commercially relevant quantum computing” by 2028
• R&D funding: The federal government will increase investment in quantum basic science and engineering
• Industry collaboration: Encourage technology companies and national laboratories to jointly develop quantum hardware and software ecosystems

According to a report by Yahoo Finance, IBM’s quantum computing team is currently operating the world’s largest quantum processor at its facility in Yorktown Heights, New York, with 1,320 qubits, named Flamingo.

Market outlook: the gap from the executive order to actual revenue

Although the executive orders improved short-term market sentiment, competition in quantum computing is becoming increasingly intense. Tech giants such as Google, Amazon, and Microsoft have all invested hundreds of millions of dollars in quantum hardware. IBM’s advantage lies in its “Quantum-as-a-Service” business model, enabling enterprises to rent quantum computing power directly via the cloud without building their own hardware.

JPMorgan’s report estimates that the global quantum computing market will reach about $20 billion by 2028, with a compound annual growth rate (CAGR) of 30%. If IBM can maintain its current market share (about 20%), revenue from its quantum business could double within the next three years.