IBM stock surged nearly 8% after a breakthrough announcement that IBM can use AMD chips for quantum computing, reducing costs and complexity. This positions IBM at the forefront of the quantum computing race. IBM aims to deliver a large-scale quantum computer by 2029. Google and Microsoft are also investing in quantum technology. IBM expects to achieve market-level growth rates in 2026. Analysts forecast IBM’s revenue to reach $80 billion by 2029, with a stock price target of $284, below the current trading price of $318.

IBM’s hardware continues to advance in quantum computing, with successful simulations using its Heron processor with 77 qubits. The ability to use AMD chips makes quantum systems more accessible and cost-effective. IBM’s recent strong quarterly performance saw revenue growth of 7%, driven by AI-powered solutions. The company’s generative AI business reached $9.5 billion in total bookings. IBM is confident in returning to market-level growth rates by 2026.

Read more at Barchart: IBM’s New Quantum Computing Announcement Is a ‘Big Deal.’ Should You Buy IBM Stock Here?