Key Stats for $IBM Stock
- Price Change for $IBM stock: 8%
- Current Share Price: $307
- 52-Week High: $311
- $IBM Stock Price Target: $286
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What Happened?
IBM (IBM) stock surged nearly 8% on Friday, marking its best day since January, after a report revealed the company can run a quantum computing error correction algorithm on AMD’s readily available and reasonably priced chips.
The breakthrough represents a major step toward commercializing quantum computers.
Reuters reported that a research paper to be published today shows that IBM can run quantum error-correction algorithms in real time on field-programmable gate array (FPGA) chips manufactured by AMD.
Jay Gambetta, director of IBM Research, told Reuters that the implementation shows the algorithm works in the real world and runs on an AMD chip that isn’t “ridiculously expensive.”
He emphasized that “implementing it, and showing that the implementation is actually 10 times faster than what is needed, is a big deal.”
AMD stock also jumped nearly 8% on the news, while shares of memory chip maker Micron climbed 5%. Other quantum computing stocks, such as D-Wave Quantum, Rigetti Computing, and IonQ, also rallied on renewed interest in the quantum space.
IBM called the development a “milestone in our clear path” toward its 2029 projection to debut a “large-scale, fault-tolerant quantum computer” named Starling.
The company said “designing and implementing a way to do this at scale, and without requiring expensive GPU clusters, is a significant achievement to scaling useful quantum computers.”
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What the Market Is Telling Us About IBM Stock
The market’s explosive reaction to IBM stock shows that investors believe this quantum computing breakthrough will move the technology from theory to practice much faster than expected.
IBM completed this algorithm work a year ahead of schedule, which signals the company is executing better than planned on its quantum roadmap.
Quantum computers use qubits to solve problems thousands of times faster than conventional computers. The technology uses quantum mechanics to solve problems that traditional computers can’t.
However, qubits are prone to making errors that can quickly overwhelm quantum chips, and tech companies have been racing to solve this problem.
IBM stock got a huge boost because the company demonstrated it can run error correction algorithms on commonly available AMD chips rather than requiring expensive specialized hardware.
That’s the key to commercialization. If quantum computing requires costly custom chips that only a handful of companies can afford, the market remains tiny.
But if it works on reasonably priced chips already manufactured at scale, the addressable market expands significantly.
The fact that IBM’s implementation runs 10 times faster than needed provides a performance cushion. That means the technology has room for future optimization and can handle more complex error correction as quantum systems scale up.
IBM stock is now the second-biggest gainer in the Dow Jones Industrial Average in 2025 with a year-to-date gain of about 40%.
The company’s multi-year plan to build the Starling quantum computer by 2029 is gaining credibility with each milestone, and completing this algorithm work a year early shows that momentum is building.
Technology giants like Google, Microsoft, and Amazon are racing to develop quantum computing capabilities.
Last year, Microsoft rolled out its first quantum computing chip, while Google launched its breakthrough chip named Willow.
A top quantum executive at Google told CNBC in March that the technology was “five years out from a real breakout.”
IBM’s announcement this week, combined with Google’s recent algorithm breakthrough, suggests the quantum computing timeline may be accelerating faster than the market expected. IBM stock is benefiting from its reputation as a leader in making technology commercially viable.
In August, IBM and AMD announced an agreement to develop quantum computing capabilities and integrate technologies. Friday’s news validates that partnership and shows both companies are making real progress on technical challenges that have plagued quantum computing for years.
The Trump administration on Thursday refuted a report that it was negotiating stakes in quantum companies, which briefly created uncertainty in the sector. But Friday’s technical breakthrough from IBM overshadowed any political noise and refocused investors on the fundamental progress being made.
IBM stock hitting a new all-time high on Friday demonstrates the market’s belief that quantum computing represents a massive new revenue opportunity for the company.
While IBM’s traditional businesses in consulting, software, and infrastructure remain essential, quantum computing offers a chance to lead in a technology that could transform industries from drug discovery to financial modeling to cybersecurity.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
