The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

International Business Machines (IBM) has secured a landmark $1 billion federal award from the U.S. Department of Commerce under the CHIPS and Science Act. The deal finalized non-dilutive funding to accelerate quantum wafer manufacturing at Anderon, a dedicated quantum foundry company spun out by IBM.

At the time of writing, IBM shares are down about 17% versus the start of this year.

Why It's Time to Load Up on Nvidia Stock

The Case for Selling CrowdStrike Stock

Dear Tesla Stock Fans, Mark Your Calendars for October 1

Stop Missing Market Moves: Get the FREE Barchart Brief โ€“ your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!

This $1 billion federal award validates IBM's pivot toward high-margin, deep-tech infrastructure.

Combined with its matching $1 billion internal capital commitment, the funds will scale Anderon's 300-millimeter quantum wafer foundry in Albany, New York.

As the premier domestic pure-play quantum foundry, Anderon positions IBM right at the center of the quantum hardware supply chain, providing "specialized components" to third-party quantum vendors.

The finalized contract is bullish for IBM stock as it could transform the firm's speculative quantum research efforts into an immediate commercial moat with direct government support.

Note that a healthy 2.82% dividend yield makes IBM even more attractive as a long-term holding.

IBM shares remain attractive because of the company's ongoing transformation into a high-margin enterprise hybrid cloud and AI powerhouse.

This was evidenced in its latest quarterly print, which showed the Software segment's annual recurring revenue (ARR) exceeding $24 billion on double-digit expansion in Red Hat and strong enterprise adoption of its data and AI platforms.

Plus, IBM is currently trading at a forward price-to-earnings (P/E) multiple of about 20x, which makes it rather attractive for an artificial intelligence beneficiary.

All in all, at current levels, IBM provides investors with a dependable blend of recurring enterprise cash flows and exposure to next-gen tech.

Investors should also note that Wall Street analysts view the year-to-date pullback in IBM stock as overdone, and recommend betting on the tech giant's longer-term recovery.

According to Barchart, the consensus rating on IBM sits at "Moderate Buy," with price targets as high as $365 indicating potential for another 45% rally from here.

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com