IBM Stock Slumps Amid Profit-Taking Following CHIPS Act Award

IBM's stock price fell by over 3% on Wednesday, despite gains in the broader market and technology stocks. The Nasdaq rose 0.67%, while the S&P 500 gained 0.31%. IBM shares are trading lower amid possible profit-taking following its recent $1 billion CHIPS Act award with the U.S. government.

The company's Anderon unit finalized the agreement, which will accelerate research and development at its 300-millimeter quantum wafer foundry in Albany, New York. IBM is separately investing another $1 billion in the venture. The funding follows a letter of intent announced in May, with the first quantum wafers already moving through the facility.

The decline stands out against a strong technology sector, which gained 0.81% on Wednesday. Analysts note that IBM's sharp rally since late July could be prompting investors to lock in gains.