JPMorgan announced that it will invest up to USD 100 billion in 27 strategic technology sectors, including Quantum Computing, driving significant gains in related stocks on Monday.
On Monday, JPMorgan announced the ‘Security and Resilience Initiative,’ a decade-long program totaling USD 1.5 trillion aimed at promoting, funding, and investing in industries critical to U.S. national economic security and resilience.
As part of this new initiative, JPMorgan will make equity and venture capital investments of up to USD 10 billion across 27 specific technologies in four key areas: supply chain manufacturing, defense aerospace, energy technology, and frontier technologies. Specific sectors include: Supply Chain and Advanced Manufacturing, encompassing critical minerals, drug precursors, and robotics. Defense and Aerospace, including defense technology, autonomous systems, drones, next-generation connectivity, and secure communications. Energy Technology, covering battery storage, grid resilience, and distributed energy resources. Frontier and Strategic Technologies, such as artificial intelligence, cybersecurity, and quantum computing.
JPMorgan CEO Jamie Dimon stated: ‘The United States is overly reliant on unreliable sources of critical minerals, products, and manufacturing, which has become extremely evident as a matter of national security.’
Following the announcement, shares of quantum computing and rare earths companies surged collectively.
$Rigetti Computing (RGTI.US)$ Stock prices closed up 25% on Monday.$D-Wave Quantum (QBTS.US)$ An increase of 23%, $Arqit Quantum (ARQQ.US)$ A rise of 20%. $IonQ Inc (IONQ.US)$ Climbing 16%,$Quantum Computing (QUBT.US)$An increase of 12%.
JPMorgan’s $1.5 trillion in funding will significantly enhance its capital, resources, and human resource allocation toward rare earth minerals, pharmaceutical precursors, robotics, and defense, aerospace, and energy technology projects.
JPMorgan plans to invest billions of dollars into relevant enterprises and hire a large number of investment banking and other professionals. JPMorgan estimates that, compared to a ‘normal scenario,’ this move will unlock an additional approximately $500 billion in financing. Jamie Dimon stated in a Monday announcement: The United States needs to accelerate its pace and increase investment. Additionally, it must remove obstacles to progress: excessive regulation, bureaucratic delays, partisan gridlock, and an education system misaligned with the skills we require.
In addition to loans and direct investments, major investment banks can also fund industries through underwriting stocks, bonds, or arranging third-party financing without utilizing their own funds.
JPMorgan stated that the $1.5 trillion target includes all funds it has facilitated, and the plan will involve its asset and wealth management division, which is responsible for managing client investments. Throughout 2024, JPMorgan has cumulatively lent and raised $2.8 trillion.
Under this new initiative, the bank will invest up to USD 10 billion in equity and venture capital to help relevant enterprises expand, innovate, or accelerate the development of strategic manufacturing.
AI Portfolio Strategist!One-click insight into holdings,Fully grasp opportunities and risks.
Editor/Joryn