IBM Advances Quantum Computing Research: Will it Boost Prospects? - Zacks Investment Research

Skip to main content X Accept All Deny Optional IBM Advances Quantum Computing Research: Will it Boost Prospects? Read More Key Takeaways IBM partners with ETH Zurich to advance algorithms for AI and quantum computing integration. Collaboration focuses on math foundations like optimization and complex system modeling. IBM continues to invest in research and innovation to support future technology development. International Business Machines Corporation (IBM - Free Report) recently announced that it has formed a strategic research collaboration with ETH Zurich, a prominent research institution of Switzerland. The collaboration will work on developing the next generation of algorithms for a world where AI and quantum computing converge. Algorithms are the logic behind everything in computers, but today’s algorithms are engineered for classical computers. However, worlds today are moving towards a place where AI-driven systems, quantum computers and hybrid computing environments will be utilized for advanced applications. The challenge is to make all those systems work efficiently, in coordination with each other. In order for that to happen, several mathematical foundations are essential. They are optimization and combinatorial problems; differential equations and dynamical systems; linear algebra and Hamiltonian simulations; and complex system modeling. IBM and ETH Zurich are set to specifically work on these concepts to advance foundational algorithmic research. Per a report from Grand View Research, the Quantum Computing market was valued at $1.42 billion in 2024. It is projected to reach $4.24 billion in 2030 with a compound annual growth rate of 20.5%. IBM is set to gain from this market trend backed by its strong research and innovation initiatives in this domain. Other Tech Firms Working in the Quantum Computing Space Google, a subsidiary of Alphabet, Inc. (GOOGL - Free Report) , is developing Google Quantum AI. The objective is to create a large-scale, error-corrected computer capable of solving problems beyond classical systems. Google is developing the entire stack, which includes hardware, software and algorithms together. The end-to-end integration will likely provide the company with greater control and accelerate innovation. Microsoft Corporation’s (MSFT - Free Report) quantum strategy, branded as Azure Quantum, is a bit different than competitors. The company is using topological qubits to store information, which it claims are less sensitive to noise compared to traditional qubits. Microsoft’s unique strategy may lead to lower errors, better scalability and lay the foundation for industrial-scale quantum computing. Microsoft also emphasizes an end-to-end approach that is hardware innovation, software and cloud. IBM’s Price Performance, Valuation and Estimates IBM stock has declined 3.2% over the past year against the industry’s growth of 87.6%. Image Source: Zacks Investment Research Going by the price/earnings ratio, IBM shares currently trade at 19.23 forward earnings, higher than industry average 9.16. Image Source: Zacks Investment Research The Zacks Consensus Estimate for IBM’s earnings for 2026 and 2027 has risen over the past 60 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. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Zacks' 7 Best Strong Buy Stocks (New Research Report) Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month. Click Here, It's Really Free More From Zacks Analyst Blog You May Like Featured Stock Picks Published In communications computers tech-stocks