'Trump effect' comes to IBM stock, 6 months after US President called IBM CEO Arvind Krishna a …

IBM shares have surged nearly 10% since US President Donald Trump praised IBM CEO Arvind Krishna almost six months ago. This has added around $28 billion to the company's market value. In a video that resurfaced on social media and went viral over the weekend, Trump can be seen applauding Krishna and calling him a "legend."In the video, Trump said, “Aravind Krishna of IBM who's actually become I would say a legend [for] the job he's done. He's taken the stock from a rather low price to a very nice price. I won't say high because I'm sure you're going to say it's going to go up a lot more, right? But so I can't say a high price, but he took IBM into a new stratosphere that nobody I think saw. If you go back to before when he took over the company, nobody would have even imagined that you'd be able to do what you've done.”The comments were made at a White House event in December 2025, but drew little investor reaction at the time. The clip went viral over the weekend, flooding the microblogging site X (formerly Twitter), according to a Bloomberg report. One post by Polymarket Money reportedly received over 700,000 views.The renewed attention around the video coincided with a sharp rise in IBM's stock price this week. Trading activity on Robinhood's 24-hour market had already indicated growing investor interest before regular trading began.The surge in IBM shares comes amid continued investor interest in artificial intelligence (AI)-related stocks. IBM had already been climbing in recent weeks, with the stock gaining nearly 40% in less than two weeks before this week's rally. Analysts and market participants pointed to the combination of social media attention and momentum-driven trading as factors behind the move.“It’s not hard. Invest in what Trump talks about, make money, rinse and repeat,” Matthew Tuttle, chief executive officer of Tuttle Capital Management told Bloomberg. Even though Trump's comments were made months ago, Tuttle added that it “doesn’t take much these days to get the animal spirits flowing.”Market strategists said IBM's rally also reflects the growing influence of algorithmic and momentum-based trading strategies. Matt Maley, chief market strategist at Miller Tabak + Co., said the stock had already broken through an important resistance level before the video resurfaced.“Whenever a stock gains some strong upside momentum in today’s markets, the momentum-based algos turbocharge that move,” he said. After IBM crossed that threshold, traders “were looking for reasons to take it even higher,” Maley added.IBM's gains have also been supported by recent developments tied to the company's quantum computing ambitions. Earlier this year, the Trump administration agreed to award IBM $1 billion to build a foundry for manufacturing quantum computing chips, with the government receiving a minority equity stake in the project.