This Is Why Jim Cramer Is Bullish on IBM Stock
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It is worth noting that Cramer's optimism seems justified. Indeed, the company recently developed a new algorithm called Relay-BP that was designed to help quantum computers detect and fix errors more effectively. This is a major step forward because quantum systems use qubits, which are units of information that are highly sensitive to outside interference. Notably, Relay-BP proved to be up to 10 times more accurate than earlier techniques, and it runs more efficiently by using less computing power. This makes it more practical for real-world applications.
As a result, the company plans to first use the algorithm to stabilize quantum memory and then expand its use to a wider range of quantum operations. While this likely isn't a final solution, it does move the industry much closer to making scalable, everyday quantum computing a reality. Therefore, this progress seems to support Cramer's view that IBM is well-positioned for the future, especially in areas like quantum computing.
Is IBM a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on seven Buys, six Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $296.15 per share implies 23.7% upside potential.
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