The latest company to jump on the “build American” bandwagon is International Business Machines (IBM 2.34%). The venerable tech giant derives a significant amount of its revenue from cloud and mainframe computing.
Now, the company plans to invest $150 billion over the next five years, and about $30 billion of that will go to investments in mainframe and quantum computing.
Nonetheless, despite the technical pivots into the cloud and its mainframe business made by CEO Arvind Krishna, IBM has remained a slow-growth company. While IBM stock has outperformed the market since Krishna took over in April 2020, these investments are not certain to bolster the investment case for IBM stock.
What the investment means
Admittedly, the investment could be transformative for IBM. The company spent only $321 million in capital expenditures (capex) during the first…
