We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can IBM's Focus on Quantum Computing be a Key Differentiator?
Read MoreHide Full Article
Key Takeaways
{\"0\":\"IBM partnered with AMD to build scalable, open-source quantum-centric supercomputing platforms.\",\"1\":\"Qiskit updates include AI-driven circuit optimization, 39x faster performance and lower memory use.\",\"2\":\"New Qiskit services, including Runtime, Code Assistant and Serverless, enhance user quantum capabilities.\"}
International Business Machines Corporation (IBM - Free Report) continues to push the boundaries of quantum technology to explore solutions to complex problems beyond the reach of classical computing. The company has inked a partnership with Advanced Micro Devices, Inc. (AMD - Free Report) to develop scalable, open-source platforms that could redefine the future of computing. The next-generation computing architectures, known as quantum-centric supercomputing, will introduce a new dimension to the realm of quantum computing by enabling users to increase the complexity of algorithms in the quantum hardware. As users seek to achieve quantum advantage — where quantum computers outperform the classical ones — the new quantum-centric supercomputing could pave the way for technological innovations across the quantum ecosystem.
IBM has made significant updates to Qiskit, its widely used quantum software platform. The latest version includes a stable release of Qiskit SDK v1.x, which offers improved capabilities for building, optimizing and visualizing quantum circuits. The Qiskit Transpiler Service leverages artificial intelligence (AI) to optimize quantum circuits, making them 39 times faster and reducing memory usage threefold compared to previous versions. This AI-powered optimization, combined with heuristic techniques, significantly reduces circuit depth, enhancing overall performance.
IBM’s Qiskit stack features a range of services tailored to various user needs. The Qiskit Runtime Service simplifies the execution of quantum circuits, while the Qiskit Code Assistant, powered by watsonx-based generative AI models, automates the development of quantum code. Additionally, the Qiskit Serverless tool facilitates quantum-centric supercomputing workloads across both quantum and classical hardware. These enhancements provide IBM Quantum Network members with the most advanced tools to discover new quantum algorithms.
Some Tech Firms Operating in Quantum Computing
Qualcomm Incorporated (QCOM - Free Report) plays an adjacent role in the quantum computing ecosystem, leveraging its expertise in semiconductors, wireless technologies and advanced chip design. Qualcomm has been exploring cryogenic CMOS (Complementary Metal-Oxide-Semiconductor) circuits and low-power semiconductors, which can be used in quantum control systems for operating at extremely low temperatures. In addition, Qualcomm’s key expertise in distributed quantum processing and secure communications facilitates a seamless quantum computing workflow.
NVIDIA Corporation (NVDA - Free Report) operates as a picks-and-shovels player in the quantum computing space, supplying the infrastructure (GPUs, SDKs, software frameworks) needed to scale and commercialize quantum computing. NVIDIA GPUs are used to simulate quantum systems on classical supercomputers, helping researchers test quantum algorithms and error-correction schemes before deploying them on actual quantum hardware. Moreover, NVIDIA’s GPUs are used to promote a quantum-AI workflow, enabling quantum computers to handle hard optimization/simulation and GPUs to handle machine learning layers.
IBM’s Price Performance, Valuation and Estimates
IBM has surged 21.1% over the past year compared with the industry’s growth of 26.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, IBM trades at a forward price-to-sales ratio of 3.5, below the industry.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for IBM’s earnings for 2025 has been on the rise over the past 30 days.
Image: Bigstock
Can IBM's Focus on Quantum Computing be a Key Differentiator?
Key Takeaways
International Business Machines Corporation (IBM - Free Report) continues to push the boundaries of quantum technology to explore solutions to complex problems beyond the reach of classical computing. The company has inked a partnership with Advanced Micro Devices, Inc. (AMD - Free Report) to develop scalable, open-source platforms that could redefine the future of computing. The next-generation computing architectures, known as quantum-centric supercomputing, will introduce a new dimension to the realm of quantum computing by enabling users to increase the complexity of algorithms in the quantum hardware. As users seek to achieve quantum advantage — where quantum computers outperform the classical ones — the new quantum-centric supercomputing could pave the way for technological innovations across the quantum ecosystem.
IBM has made significant updates to Qiskit, its widely used quantum software platform. The latest version includes a stable release of Qiskit SDK v1.x, which offers improved capabilities for building, optimizing and visualizing quantum circuits. The Qiskit Transpiler Service leverages artificial intelligence (AI) to optimize quantum circuits, making them 39 times faster and reducing memory usage threefold compared to previous versions. This AI-powered optimization, combined with heuristic techniques, significantly reduces circuit depth, enhancing overall performance.
IBM’s Qiskit stack features a range of services tailored to various user needs. The Qiskit Runtime Service simplifies the execution of quantum circuits, while the Qiskit Code Assistant, powered by watsonx-based generative AI models, automates the development of quantum code. Additionally, the Qiskit Serverless tool facilitates quantum-centric supercomputing workloads across both quantum and classical hardware. These enhancements provide IBM Quantum Network members with the most advanced tools to discover new quantum algorithms.
Some Tech Firms Operating in Quantum Computing
Qualcomm Incorporated (QCOM - Free Report) plays an adjacent role in the quantum computing ecosystem, leveraging its expertise in semiconductors, wireless technologies and advanced chip design. Qualcomm has been exploring cryogenic CMOS (Complementary Metal-Oxide-Semiconductor) circuits and low-power semiconductors, which can be used in quantum control systems for operating at extremely low temperatures. In addition, Qualcomm’s key expertise in distributed quantum processing and secure communications facilitates a seamless quantum computing workflow.
NVIDIA Corporation (NVDA - Free Report) operates as a picks-and-shovels player in the quantum computing space, supplying the infrastructure (GPUs, SDKs, software frameworks) needed to scale and commercialize quantum computing. NVIDIA GPUs are used to simulate quantum systems on classical supercomputers, helping researchers test quantum algorithms and error-correction schemes before deploying them on actual quantum hardware. Moreover, NVIDIA’s GPUs are used to promote a quantum-AI workflow, enabling quantum computers to handle hard optimization/simulation and GPUs to handle machine learning layers.
IBM’s Price Performance, Valuation and Estimates
IBM has surged 21.1% over the past year compared with the industry’s growth of 26.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, IBM trades at a forward price-to-sales ratio of 3.5, below the industry.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for IBM’s earnings for 2025 has been on the rise over the past 30 days.
Image Source: Zacks Investment Research
IBM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.