# IBM’s $150 Billion Investment Boosts U.S. Tech Manufacturing Focus
Hello, Reader.
Bruce Springsteen’s iconic 1984 anthem, “I was born in the U.S.A.,” resonates today not just with patriotism but also with the tech industry, specifically in semiconductor manufacturing.
This morning, International Business Machines Corp. (IBM) announced a significant commitment: a $150 billion investment in the U.S. over the next five years. This plan includes more than $30 billion dedicated to research and development aimed at continuing the production of mainframe and quantum computers within the United States.
“We have been focused on American jobs and manufacturing since our founding 114 years ago,” stated IBM CEO Arvind Krishna. He emphasized that this investment reaffirms IBM’s role as a leader in advanced computing and artificial intelligence capabilities.
IBM’s announcement continues a trend of reshoring operations, as mentioned in an earlier discussion on Smart Money. Nvidia Corp. (NVDA) made headlines recently by stating its intention to exclusively manufacture AI supercomputers in the U.S.
Contrasting with these giants is Intel Corp. (INTC), which has been doing what many larger companies are now starting to adopt. As I have pointed out:
Intel embodies what both political parties aim for—an American firm creating innovative technology on home soil. Yet, market enthusiasm has not matched this vision.
Despite its legacy as a semiconductor pioneer, Intel struggles in the market. However, when its multibillion-dollar fabrication plants begin producing chips, earnings could surge. Currently, Intel’s Stock trades at 16 times projected 2026 earnings and just 10 times the estimated results for 2027—significantly below the S&P 500 average.
Investing in companies with reasonable valuations can provide greater downside protection than high-flying alternatives. This justifies my investment strategy, which emphasizes companies with solid fundamentals trading at attractive multiples.
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Smart Money Roundup
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In his latest analysis, Tom Yeung highlights the frequent use of the term “unprecedented” in the context of economic events, from America’s conflict with Great Britain to the current financial climate. While U.S. investors may perceive recent tariffs and market volatility as entirely new phenomena, Yeung points out that history often follows repeating patterns. He also discusses strategies for capitalizing on these turbulent conditions.
Seeking Global Investment Opportunities
April 26, 2025
As traditional investment avenues close, savvy investors are finding new opportunities. Reflecting on the dot-com crash, when tech stocks faltered, many undervalued non-tech firms thrived. In this report, I will identify two undervalued foreign markets where investors can capitalize while the majority remain fixated on more familiar options.
Looking Ahead: The Future of American Manufacturing
As major tech firms consider manufacturing in the U.S., a crucial question emerges: Who will carry out the work?
According to InvestorPlace analyst Luke Lango, the likely answer lies in machines.
Lango argues that advancements in physical AI, including robotics, automation, and machine vision, are essential for a successful resurgence of American manufacturing.
He invites interested parties to join him at The 2025 Summer Panic Summit on Thursday, May 1, at 7 p.m. Eastern (register here). During this event, Lango will unveil a selection of seven small-cap U.S. AI stocks, dubbed the “MAGA 7” (Make AI Great in America), believed to be pivotal for building wealth in the evolving market landscape.
Stay tuned for additional insights from Lango later this week as he shares catalysts that may drive the next phase of the AI boom and further details on these promising stocks.
Regards,
Eric Fry
