New Delhi, June 3 -- Shares of IBM dropped 8% in Wednesday's trade, falling to $302, as investors appeared to book profits following a sustained rally that had pushed the stock to multiple record highs. The stock had closed the previous session with a 3% gain and touched a fresh all-time high of $332 during intraday trade.

The rally had also marked the stock's fifth straight day of gains, during which it surged a cumulative 31%. The sharp acceleration in the share price came after the company announced plans to invest more than $10 billion over the next five years in quantum computing.

The investment will span research and development, capital expenditure, manufacturing scale-up, ecosystem partnerships, and mergers and acquisitions. IBM...