Latest news with #InternationalBusinessMachinesCorporation
Yahoo
7 hours ago
- Business
- Yahoo
IBM Reveals Quantum Chip, Eyes 2029 Starling Supercomputer Launch
International Business Machines Corporation (NYSE:IBM) is one of the best Dow stocks to invest in. On June 10, the company revealed that it's working on a large-scale, fault-tolerant quantum computer named Quantum Starling as part of its broader quantum roadmap. A key component of this effort is the upcoming IBM Quantum Nighthawk processor, which is expected to launch later this year, according to a company blog post. Like several other tech giants and well-funded startups, International Business Machines Corporation (NYSE:IBM) is racing to advance quantum computing. The core challenge they all face lies in qubit reliability—while qubits can perform rapid calculations, they tend to generate significant errors. Researchers often dedicate some qubits to correcting these errors, but that leaves fewer available for practical computation. International Business Machines Corporation (NYSE:IBM) shifted its strategy in 2019, and now claims it has developed a new algorithm that could dramatically reduce the number of qubits required for error correction. Jay Gambetta, International Business Machines Corporation (NYSE:IBM) vice president of quantum initiatives, explained that, unlike the company's earlier approach, where theory dictated chip design, the current strategy focuses on building chips that are feasible first and then designing the error-correction method around them. This more pragmatic path has given IBM the confidence to roll out a series of increasingly advanced systems through 2027, paving the way for much larger quantum machines. IBM has surged by over 25.6% since the start of 2025. While we acknowledge the potential of IBM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Business
- Yahoo
IBM Reveals Quantum Chip, Eyes 2029 Starling Supercomputer Launch
International Business Machines Corporation (NYSE:IBM) is one of the best Dow stocks to invest in. On June 10, the company revealed that it's working on a large-scale, fault-tolerant quantum computer named Quantum Starling as part of its broader quantum roadmap. A key component of this effort is the upcoming IBM Quantum Nighthawk processor, which is expected to launch later this year, according to a company blog post. Like several other tech giants and well-funded startups, International Business Machines Corporation (NYSE:IBM) is racing to advance quantum computing. The core challenge they all face lies in qubit reliability—while qubits can perform rapid calculations, they tend to generate significant errors. Researchers often dedicate some qubits to correcting these errors, but that leaves fewer available for practical computation. International Business Machines Corporation (NYSE:IBM) shifted its strategy in 2019, and now claims it has developed a new algorithm that could dramatically reduce the number of qubits required for error correction. Jay Gambetta, International Business Machines Corporation (NYSE:IBM) vice president of quantum initiatives, explained that, unlike the company's earlier approach, where theory dictated chip design, the current strategy focuses on building chips that are feasible first and then designing the error-correction method around them. This more pragmatic path has given IBM the confidence to roll out a series of increasingly advanced systems through 2027, paving the way for much larger quantum machines. IBM has surged by over 25.6% since the start of 2025. While we acknowledge the potential of IBM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None.
Yahoo
23-05-2025
- Business
- Yahoo
Analyst Highlights Potential ‘Big Driver' for IBM (IBM), Calls Pullback ‘Transitory'
As major AI players waver due to valuation and demand concerns, investors are looking for relatively under-the-radar tech stocks for growth potential. IBM has been gaining ground as the company plans new strategies for a turnaround. The stock is up 16% so far this year. Wamsi Mohan, Bank of America Global Research senior IT hardware analyst, said in a recent program on CNBC that he believes International Business Machines Corporation (NYSE:IBM) has the ability to meet its targets and called the pullback the company faced 'transitory.' 'They've divested a lot of assets that were not growing, they've invested in assets that are progrowth, and they're changing the growth profile of this company—and we think for the better. Now when you look at the quarter itself, the quarter was 2% constant currency growth, and the company has guided to about 5% plus constant currency growth for the year. So there's some skepticism on their ability to meet those targets. When we dig into the numbers, we actually think there is a way for them to meet or beat these kinds of numbers, and that's really driven by the fact that they're in a mainframe launch year, and the mainframe still is very relevant, contrary to maybe popular belief, and can be a big driver for numbers.' Mohan said he is 'very bullish' on International Business Machines Corporation (NYSE:IBM). International Business Machines Corporation (NYSE:IBM) is indeed making a comeback. As of the end of Q4, IBM's AI products and services surpassed $5 billion in total bookings, with $2 billion added just since last quarter. Last year, IBM Common Stock (NYSE:IBM) updated its Granite family of AI models for enterprise use, making them about 90% more cost-efficient than large models. RedHat is also key in IBM Common Stock (NYSE:IBM) open-source GenAI strategy. Management highlighted that RHEL AI and OpenShift AI platforms are gaining traction, along with IBM Common Stock (NYSE:IBM) watsonx AI solutions. While we acknowledge the potential of IBM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than IBM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Is International Business Machines (IBM) the Best Quantum Computing Stock to Invest in Now?
We recently published a list of . In this article, we are going to take a look at where International Business Machines Corporation (NYSE:IBM) stands against other best quantum computing stocks to invest in now. When AI first gained widespread attention a few years ago, much of the conversation focused on its potential to boost productivity, streamline data analysis, and improve efficiency within businesses. While AI has certainly made an impact in those areas, its capabilities extend far beyond. Lesser-known but equally important applications of AI include optimizing drug development processes, detecting financial fraud, and strengthening cybersecurity systems. However, achieving significant breakthroughs in these complex fields will require more advanced AI systems. That's where quantum computing enters the picture. Although quantum technology hasn't yet been fully integrated with AI, its potential to unlock new levels of performance and problem-solving is immense, offering a powerful future synergy between the two fields. Quantum computing is a new type of computing that uses the strange rules of quantum physics to solve really hard problems. Unlike regular computers that use bits (which are either 0 or 1), quantum computers use qubits (quantum bits), which can be both 0 and 1 at the same time. This lets them handle a lot more information at once. Qubits can also be linked together in a special way called entanglement, which makes them even more powerful. Although today's quantum computers are still early and not perfect, they're improving fast and could one day change fields like medicine, finance, and cybersecurity. In a recent CNBC interview, Executive Chair & Chairman of the Board of IonQ, provided insights into the company's strategy and vision for the future of quantum computing and its integration with artificial intelligence. Chapman explains that the company uses a unique approach to building quantum computers based on trapped-ion technology, which offers greater stability and scalability than other quantum systems. This method allows for more precise control over qubits, which is essential for solving complex computational problems currently beyond classical computers' reach. Chapman discusses how quantum computing can significantly enhance AI capabilities. Traditional AI algorithms, especially those involving large datasets and intricate optimization challenges, are limited by the processing power of classical systems. Quantum computers, however, have the potential to process exponentially larger datasets and perform calculations that would otherwise take years. This could lead to breakthroughs in areas like drug discovery, supply chain optimization, and financial modeling. The former CEO also highlighted the company's focus on practical applications rather than just theoretical advancement. The company is actively developing quantum algorithms specifically designed to complement AI models, and it is working with major tech firms and research institutions to accelerate real-world adoption. Chapman envisions a future where quantum computing becomes a critical tool for AI development, enabling smarter, faster, and more efficient solutions across industries. To compile the list of 12 Best Quantum Computing Stocks to Invest in Now, we conducted thorough research, analyzing multiple financial media reports and industry reports. Starting with an initial list of 20 companies, we narrowed it down by choosing pure-play quantum computing stocks that are popular among elite hedge funds. The final selection is ranked in ascending order of their hedge fund sentiment, as of Q4 2024. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A closeup of a woman's hands typing rapidly on a laptop in a corporate office setting. Number of Hedge Fund Holders: 60 International Business Machines Corporation (NYSE:IBM) is a quantum computing company that has been investing in the technology for years. The company offers cloud access to its quantum systems and has built tools and partnerships to help businesses and researchers develop quantum applications. With a clear roadmap toward making quantum practical and useful, IBM stands out as a key player in this fast-developing field. IBM's Q1 2025 earnings showed strong performance, exceeding expectations with $14.5 billion in revenue and $2 billion in free cash flow. The company reported solid growth in software, led by Red Hat and AI solutions, while consulting revenue remained stable. IBM's hybrid cloud and AI-focused strategy drove success, with significant traction in generative AI. The company remains confident in its full-year guidance of 5%+ revenue growth and $13.5 billion in free cash flow. IBM's diversified portfolio and strong client relationships position it well for future growth despite macro uncertainties. In Q1 2025, International Business Machines Corporation (NYSE:IBM) expanded quantum capabilities with Europe's first IBM Quantum System Two. The company highlighted its leadership in generative AI and virtualization technologies, which intersect with quantum computing infrastructure. IBM's software portfolio, including Red Hat OpenShift, is positioned to support emerging quantum workloads. Overall, IBM ranks 5th on our list of best quantum computing stocks to invest in now. While we acknowledge the growth potential of IBM, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than IBM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . 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Yahoo
12-05-2025
- Business
- Yahoo
International Business Machines (IBM): AI and Hybrid Cloud Strategy Drives $290 Price Target
We recently published a list of . In this article, we are going to take a look at where International Business Machines Corporation (NYSE:IBM) stands against other AI stocks making moves this week. Is China finally gaining supremacy in the AI arms race? Not quite, but executives from some of the top artificial intelligence companies believe that the country needs to tweak its infrastructure and boost exports to stay ahead in the game. In a US Senate hearing held last Thursday, American AI giants' leaders stressed that even though the US is ahead in the AI race, Washington needs to boost infrastructure and champion AI chip exports to maintain its supremacy over Beijing. READ ALSO: and The U.S. Senate Commerce Committee, chaired by Republican Senator Ted Cruz, is aiming to reduce the regulatory barriers to artificial intelligence in the U.S. This is particularly after China managed to woo the world with its AI advancements, such as cheaper and efficient AI models from DeepSeek and an advanced AI chip from Huawei. The US tech industry is using these concerns to push the Trump administration toward favourable policies, including loosening the limits on the export of AI chips. 'The number-one factor that will define whether the U.S. or China wins this race is whose technology is most broadly adopted in the rest of the world. The lesson from Huawei and 5G is that whoever gets there first will be difficult to supplant'. Sam Altman, CEO of OpenAI, also testified at the hearing. He stated how he believes societal advances from AI will accelerate in the next few years through U.S. innovation. However, he also stated that 'investment in infrastructure is critical.' In a written testimony reviewed earlier by Reuters, it was reported how the AI leaders would also be urging U.S. lawmakers to streamline federal permitting for artificial intelligence energy needs and initiate more government data sets for AI training. 'America's advanced economy relies on 50-year-old infrastructure that cannot meet the increasing electricity demands driven by AI, reshoring of manufacturing, and increased electrification.' For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A closeup of a woman's hands typing rapidly on a laptop in a corporate office Business Machines Corporation (NYSE:IBM) is a multinational technology company and a pioneer in artificial intelligence, offering AI consulting services and a suite of AI software products. On May 8, Stifel analysts maintained a 'Buy' rating on the stock with a price target set at $290.00. The rating has been issued after the company's investor event at its annual user conference. The analysts noted that the event focused on how IBM is using AI and hybrid cloud tools like Red Hat to help businesses adopt AI. Stifel analysts particularly highlighted three areas that can influence IBM's earnings growth over the short and long term. The first substantial factor that analysts noted for margin expansion and free cash flow (FCF) growth has been IBM's internal efforts to deploy AI. Through the said deployment, IBM will be able to increase internal investments in areas such as research and development, marketing, and more. Second, watsonx Orchestrate, IBM's generative AI and automation solution, was recognized as having the potential to become a commercial product that helps other businesses increase productivity. Finally, the next generation of IBM's mainframe, z17, was pointed out as a way for IBM to reclaim workloads that have shifted to x86 servers and cloud platforms. The analysts concluded with a positive outlook on IBM, stating that the company's focus on growth appears stronger now than before. Overall, IBM ranks 8th on our list of AI stocks making moves this week. While we acknowledge the potential of IBM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than IBM but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
