Trump Regrets Selling IBM Stock, Now Backs Its Quantum Future

Former President Donald Trump has admitted that selling IBM's stock was a mistake and is now publicly backing the company's quantum computing future. The remarks come as the U.S. government continues to ramp up support for domestic quantum-computing initiatives, positioning IBM as a potential beneficiary. Trump's reversal underscores the shifting sentiment around IBM, which has seen its stock trade at a forward P/E of roughly 18x, below the S&P 500's 21x, while offering a dividend yield near 3.5% and a buyback yield of about 2%. The "Fed model" comparing earnings yield (around 5.6% for IBM) to the 10-year Treasury yield (currently ~4.2%) suggests IBM may be undervalued relative to bonds, a factor value-oriented traders often weigh.

Trump's about-face on IBM highlights the growing political and policy focus on quantum technology, which is seen as a strategic priority for national security and economic competitiveness. For equities traders, this attention could translate into increased volatility and interest in IBM shares, especially if further government contracts or funding announcements emerge. Options-implied volatility on IBM has ticked up to 28%, above its 20-day average of 24%, signaling heightened expectations for price swings. Meanwhile, breadth indicators in the tech sector show mixed signals: while the NYSE advance-decline line remains positive, the percentage of stocks above their 50-day moving average has slipped to 55%, suggesting selective rotation. Sector rotation into quantum-related names may gain momentum if policy catalysts materialize, with IBM's quantum roadmap—including its 1,000+ qubit processor target for 2025—serving as a key narrative driver.

Looking ahead, traders should monitor any official policy statements or funding allocations related to U.S. quantum computing programs, such as the National Quantum Initiative Act reauthorization. IBM's upcoming earnings reports and quantum roadmap milestones will also be key catalysts. The broader market will watch for signs of sector rotation into quantum-related stocks as the narrative gains traction, with the Quantum Computing ETF (QTUM) up 12% year-to-date. Additionally, the CBOE Volatility Index (VIX) hovering near 15 suggests complacency that could be disrupted by unexpected policy announcements. Investors can track IBM's real-time stock price on NowPrice to gauge market reaction to these developments.