IBM, CRAY Awarded Supercomputer Project

Defense Advanced Research Project Agency (DARPA), announced that they will be giving $250 million to Cray Inc. (NASDAQ : CRAY) and $244 to IBM (NYSE : IBM) for the development of very large supercomputers.  They have been selected to develop DARPA’s High Productivity Computing Systems (HPCS) program.  The amount of money that the government spends on pure computing power is enormous, and it will bring results quickly.  Investors also feel that this is good news for the companies involved, as both IBM and Cray stock have gone up today.  IBM closed up 44 cents and CRAY closed up $1.70 on the day.  CRAY stock had a huge volume of shares traded today.  They ended the day at 4.80M, way above their average of 240 thousand. When I think of government supercomputers, I immediately picture the movie “Wargames”.  These computers are built completely to compute complex formulas and advanced function but I could picture them saying, “Would you like to play a game?”