Core Insights - IBM has successfully demonstrated the ability to run a crucial quantum computing algorithm using standard chips from Advanced Micro Devices (AMD) [2] Group 1 - The demonstration highlights the versatility and applicability of IBM's quantum algorithm beyond specialized hardware [2] - Jay Gambetta, IBM's vice president overseeing quantum initiatives, emphasized the significance of this achievement for the future of quantum computing [2]

Core Insights - IBM has successfully executed a key quantum computing algorithm using commonly available chips from Advanced Micro Devices, marking a significant step towards the commercialization of advanced quantum computers [1] Company Developments - The collaboration between IBM and Advanced Micro Devices highlights the potential for integrating quantum computing with existing semiconductor technology, which could accelerate the development of practical quantum applications [1] Industry Implications - This advancement indicates a growing trend in the quantum computing sector, where leveraging existing technologies may lead to faster commercialization and broader adoption of quantum solutions in various industries [1]

Quantum Computing Sector - Quantum computing stocks are experiencing significant gains, with D-Wave up 14%, ION Q up 7%, and Regetti up 10% following a report that the Trump administration is considering equity stakes in quantum companies [1] - IBM has been a long-time player in the quantum computing space, although its shares fell 1.6% after initially dropping 6% due to a slowdown in its Red Hat hybrid cloud segment, not its quantum business [2][3] IBM's Performance - IBM's Red Hat segment saw a quarter-over-quarter decrease of approximately 2%, but CEO Arvin Krishna expressed confidence in a rebound, citing a 12% increase in the AI business to $9.4 billion [3] - Investors are beginning to recognize that the situation with IBM is not as dire as initially perceived, as the stock has recovered much of its losses [3] Market Sentiment and Economic Indicators - The market is currently optimistic, with a focus on upcoming earnings reports from major companies like Intel and Ford [5][6] - The Consumer Price Index (CPI) data, expected to show a year-over-year inflation rate of 3.1%, is anticipated to influence market sentiment, although it is considered old data [9][10] - There is a strong expectation of a rate cut by the Federal Reserve, with 99% odds for an announcement next Wednesday, which is reflected in increased call buying in small-cap stocks like the Russell 2000 [11][13]

Group 1: Hong Kong Stocks - Yuewen Group (00772) rose over 4% as the company launched four major initiatives to develop its comic-drama ecosystem and actively promote IP commercialization [1] - ASMPT (00522) increased by over 7% after Morgan Stanley reported a recovery in mainstream semiconductor demand and continuous growth in the advanced packaging market, estimating that ASMPT's third-quarter order shipment ratio will remain above 1 [1] - Sands China (01928) rose over 1% as Citigroup expects its EBITDA recovery to continue in Q4 this year and into next year [1] - Jinli Permanent Magnet (06680) saw an increase of over 5% due to significant improvement in profitability and the strategic importance of rare earth resources [1] - AVIC Aircraft (02357) rose over 4% as its Zihuo future aircraft concept model was showcased at the Airshow, with business spanning the aviation industry chain [1] - Minmetals Resources (01208) increased by over 2% with a reported 11% year-on-year growth in total copper production in Q3, and institutions are optimistic about the performance of the Las Bambas mine [1] - Semiconductor stocks led the gains, with Huahong Semiconductor (01347) up over 10%, Shanghai Fudan (01385) up over 4%, SMIC (00981) up over 5%, and Jingmen Semiconductor (02878) up over 6%. Galaxy Securities noted that semiconductor equipment is a critical support sector in the tech war [1] - Horizon Robotics-W (09660) rose over 3% as it gained favor from domestic and international car manufacturers, with HSD already designated by multiple automakers [1][2] Group 2: US Stocks - Tesla (TSLA.US) rose 2.28% with Q3 2025 revenue at $28.095 billion, a 12% year-on-year increase, exceeding analyst expectations [3] - IBM (IBM.US) fell 0.87% as its Q3 hybrid cloud division revenue growth slowed and fell short of expectations [3] - Micron Technology (MU.US) increased by 4.15% as it officially samples the 192GB SOCAMM2 to customers, actively expanding low-power memory applications in AI data centers [3] - NIO (NIO.US) rose 0.73% with over 10,000 deliveries last week, including a record high of over 3,500 for the L90 model [3] - Hesai (HSAI.US) increased by 3.95% after announcing a strategic partnership with Guanghetong to jointly release a multi-modal perception and control solution based on lidar and dual-vision technology [3] - Baidu (BIDU.US) rose 2.95% as it partnered with Swiss Post's subsidiary PostBus to launch autonomous taxi road tests in Switzerland in December [3] - Futu Holdings (FUTU.US) increased by 3.65% after CICC raised its target price by 6% to $230, maintaining an "outperform" rating [3] - Alibaba (BABA.US) rose 3.64% as its Quark AI glasses are set to launch for pre-sale on the 24th [4] - Southwest Airlines (LUV.US) fell 6.25% despite a 1.1% year-on-year revenue increase to $6.95 billion in Q3, exceeding market expectations [4] - Intel (INTC.US) rose 3.36% with Q3 revenue at $13.65 billion, a 2.8% year-on-year increase [5]

Shares of IBM slid Thursday after the tech company’s third-quarter results exceeded expectations on the top and bottom lines, but contained a few tidbits that left Wall Street disappointed. https://t.co/onzrJrbv1V ...

Core Insights - The Trump administration is negotiating with U.S. quantum computing companies for equity stakes in exchange for federal funding [1][2] - Companies involved include IonQ Inc., Rigetti Computing, and D-Wave Quantum, with discussions led by U.S. Deputy Commerce Secretary Paul Dabbar [2][3] - Funding awards are expected to start at $10 million each, with other firms like Quantum Computing Inc. and Atom Computing considering similar arrangements [3] Government Involvement - The U.S. government previously acquired nearly a 10% stake in Intel by converting $9 billion in grants into equity [5] - The Department of Defense gained a roughly 15% stake in MP Materials, potentially making it the largest shareholder [6] Industry Developments - Microsoft has demonstrated advancements in practical quantum computing, indicating that significant breakthroughs may occur in the near future [7] - Other major players like Google and IBM are also reporting accelerated progress in quantum computing technology [7]

Financial Performance - Revenue for Q3 2025 was $16.3 billion, a 9.1% increase from $14.97 billion in Q3 2024[227] - Operating (non-GAAP) earnings for Q3 2025 were $2.5 billion, up 16.8% from $2.16 billion in Q3 2024[230] - Diluted earnings per share from continuing operations were $1.84 in Q3 2025, compared to a loss of $0.34 in Q3 2024[240] - Gross profit margin increased to 57.3%, up 1.1 percentage points year-over-year[227] - Revenue for the nine months ended September 30, 2025, was $47.8 billion, a 5.9% increase from $45.2 billion in 2024[243] - Net income for the nine months ended September 30, 2025, was $4.993 billion, a 60.6% increase from $3.109 billion in 2024[245] - Diluted earnings per share from continuing operations increased by 59.7% to $5.27 in the first nine months of 2025[254] - Total revenue for Q3 2025 was $16.331 billion, a 9.1% increase from $14.968 billion in Q3 2024[262] - Total revenue for the nine months ended September 30, 2025, was $47,849 million, representing a year-over-year increase of 5.9%[264] Revenue Breakdown - Software revenue grew by 10.5% as reported, while consulting revenue increased by 3.3%[234] - Americas revenue increased by 9.3% as reported, while EMEA revenue rose by 14.6%[235] - Software revenue for the same period was $20,932 million, up 9.2% year-over-year, driven by strong growth in Hybrid Cloud and Automation[270] - Consulting revenue for the nine months was $15,706 million, a modest increase of 1.2% year-over-year, with Intelligent Operations showing a growth of 2.8%[276] - Hybrid Cloud revenue increased by 13.7% in Q3 2025, driven by strong demand for subscription offerings like OpenShift and Ansible[268] - Infrastructure revenue for Q3 2025 was $3,559 million, reflecting a 17.0% increase year-over-year, with Hybrid Infrastructure revenue growing by 28.2% to $2,263 million[285] Cash Flow and Expenses - The company generated $3.1 billion in cash from operations and $2.4 billion in free cash flow in Q3 2025[233] - Cash provided by operating activities was $3.1 billion in Q3 2025, an increase of $0.2 billion compared to Q3 2024[241] - Free cash flow for the first nine months of 2025 was $7.2 billion, an increase of $0.6 billion compared to the prior-year period[258] - Total expenses decreased by 24.8% in Q3 2025, primarily due to a prior-year pension settlement charge of $2.7 billion[237] - Total expense decreased by 24.8% year-over-year to $6,931 million for the three months ended September 30, 2025[300] Investments and Acquisitions - The company made significant investments in innovation, including the acquisition of HashiCorp in Q1 2025[256] - The company invested $7.9 billion in acquisitions during the first nine months of 2025, including the acquisition of HashiCorp[371] - The company completed six acquisitions in the first nine months of 2025, including HashiCorp, enhancing its hybrid cloud capabilities[354] Profitability Metrics - Operating (non-GAAP) pre-tax income from continuing operations was $3.0 billion, a 22.0% increase compared to Q3 2024[239] - Operating (non-GAAP) earnings for the first nine months of 2025 were $6.7 billion, an 11.5% increase from $5.994 billion in 2024[245] - The gross profit margin for Software increased to 83.5% for the first nine months of 2025, up 0.4 points compared to the prior year[273] - The gross profit margin for Infrastructure in Q3 2025 was 57.2%, an increase of 2.2 percentage points compared to the prior year, with segment profit rising 52.6% to $644 million[287] Tax and Debt - The effective tax provision for Q3 2025 was $686 million, compared to a tax benefit of $485 million in Q3 2024, influenced by a one-time charge from tax law changes[323] - Total debt rose to $63,115 million as of September 30, 2025, an increase of $8,142 million from December 31, 2024, due to debt issuances for liquidity[331] - The amount of unrecognized tax benefits as of September 30, 2025, was $9,325 million, which could favorably affect the company's effective tax rate if recognized[328] Market and Economic Outlook - The company expects technology to continue supporting overall economic growth and competitive advantage[231] - AI adoption is accelerating, with IBM's AI offerings focused on helping businesses scale AI and improve productivity through solutions like IBM watsonx[352] - The company faces various risks including economic downturns, innovation failures, and integration challenges from acquisitions[393]

Market Performance - Major stock indices showed positive movement, with the Nasdaq rising by 201.40 points (0.9%) to 22,941.80, S&P 500 climbing 39.04 points (0.6%) to 6,738.44, and Dow increasing 144.20 points (0.3%) to 46,734.61 [2] - Energy stocks experienced significant gains due to a surge in crude oil prices following U.S. sanctions on Russia's largest oil companies [2][3] Sector Performance - The Philadelphia Oil Service Index increased by 4.8% and the NYSE Arca Oil Index rose by 3.0%, reflecting strength in the energy sector [3] - The NYSE Arca Computer Hardware Index surged by 4.0%, driven by a 13.7% increase in SanDisk (SNDK) shares, reaching a record closing high [4] - Other sectors such as networking, semiconductors, and steel stocks also showed considerable strength, while transportation stocks declined [4] Corporate Earnings - Tesla (TSLA) shares rebounded by 2.3% despite reporting weaker than expected third-quarter earnings [5] - IBM's shares fell by 0.8% after reporting third-quarter earnings that exceeded analyst estimates but indicated slowing growth in its core cloud computing segment [6] - Honeywell (HON) shares rose by 6.8% after reporting third-quarter results that beat analyst expectations [7] Economic Indicators - Existing home sales in the U.S. increased by 1.5% to an annual rate of 4.06 million in September, matching economist estimates [8]

Market Overview - US stocks experienced gains, with the Nasdaq Composite rising 0.9%, S&P 500 increasing by 0.6%, and Dow Jones Industrial Average up by 0.3% [1] - Investors reacted to quarterly results from major companies, including Tesla and IBM, which reported earnings that fell short of expectations [1] Company Performance - Tesla shares recovered to gain 2% after mixed third-quarter results, marking the beginning of the "Magnificent Seven" earnings cycle [3] - IBM stock declined approximately 1% as stronger-than-expected profits were countered by disappointing software revenue [3] - American Airlines stock surged after the company provided fourth-quarter earnings guidance that exceeded expectations [4] - T-Mobile shares dipped despite a larger-than-expected growth in its customer base [4] - Intel's upcoming quarterly results are highly anticipated as the company continues to struggle [4] Industry Developments - Oil futures increased by over 5% following US sanctions on major Russian producers, with Brent crude settling above $65 per barrel and West Texas Intermediate above $61 [2] - The Trump administration is exploring investments in quantum computing companies, leading to a surge in shares of IonQ and Rigetti Computing [5] Economic Indicators - The delayed release of the September Consumer Price Index report is expected to provide insights into the inflation landscape amid a government shutdown [6]

Market Overview - U.S. equities showed signs of recovery on October 23, 2025, with major indexes bouncing back from a volatile session the previous day, driven by corporate earnings, U.S.-China trade relations, and a surge in oil prices [1][2] - The Dow Jones Industrial Average (DJIA) rose by approximately 0.1% or 25 points, while the S&P 500 (SPX) advanced by about 0.3%, and the Nasdaq Composite (IXIC) led gains with a rise of around 0.6% [2] Sector Performance - The Energy Select Sector SPDR (XLE) surged by 1.62%, significantly contributing to market gains, fueled by a nearly 6% increase in West Texas Intermediate crude oil futures, which reached $61.90 per barrel due to new U.S. sanctions on Russian oil companies [3] - The Technology Select Sector SPDR (XLK) experienced a slight decline of 0.34%, while Consumer Discretionary (XLY) and Health Care (XLV) sectors also finished lower [3] Upcoming Events - Investors are awaiting the Consumer Price Index (CPI) report scheduled for October 24, which is expected to provide insights into inflation trends and influence Federal Reserve policy decisions, with a 96.7% probability of a Fed rate cut in October [4] Corporate Earnings - Major companies are set to report quarterly results, including Apple (AAPL) on October 30, Microsoft (MSFT) on October 29, and Alphabet (GOOGL, GOOG) also on October 29, with expectations of strong revenue growth [5] - Intel (INTC), Ford (F), Honeywell (HON), T-Mobile US (TMUS), and American Airlines (AAL) are also expected to release their results [5] Geopolitical Factors - The White House is considering new curbs on software exports to China, which previously affected tech stocks, indicating ongoing geopolitical tensions that could lead to market volatility [6] Major Stock News - Tesla (TSLA) reported a 12% revenue increase but a 37% narrowing of net income for Q3 2025, leading to initial stock declines despite record vehicle deliveries of 497,099 units [7] - Google (GOOGL, GOOG) announced a corporate agreement for a gas-fired power plant with carbon capture technology and a significant quantum computing breakthrough, with shares climbing 0.82% [9] - Nvidia (NVDA) continued strong momentum with shares near all-time highs, driven by major AI partnerships and a $5 billion investment in Intel for a 4% stake [10] - Apple (AAPL) faced a legal setback in the UK regarding its App Store commission, but remains financially robust ahead of its earnings release [11] - Microsoft (MSFT) is expected to exceed revenue expectations, driven by strong growth in its Azure cloud business [12] - IBM (IBM) saw its stock drop despite better-than-expected profit and revenue, indicating challenges in its enterprise business [13]