Investopediaยท2025-10-24 18:41Core Insights - AMD and IBM experienced significant stock price increases following the news that IBM can run a key quantum computing error-correcting algorithm on AMD's affordable chips [1][6] - IBM's research paper, set to be released, highlights the capability of running these algorithms in real time on AMD's field programmable gate array semiconductors [2] Company Performance - AMD shares have more than doubled since the beginning of the year and rose nearly 7% in mid-afternoon trading on the reported news [3] - IBM's stock surged over 7%, contributing to a year-to-date gain of approximately 40%, making it the second-largest gainer in the Dow Jones Industrial Average for 2025 [3] - Shares of Micron, which supplies memory solutions for AMD and Nvidia chips, increased by 5% on the same day [3] Significance of the News - For IBM, this development marks a step towards making quantum computers more commercially viable and reliable [4] - For AMD, it demonstrates the growing importance of affordable and flexible chips in advanced research, enhancing the company's position in next-generation computing [4] - Jay Gambetta from IBM research emphasized the significance of the implementation being ten times faster than required [4] Quantum Computing Context - Quantum computers utilize qubits to solve problems at speeds thousands of times faster than traditional computers, but qubits are susceptible to errors that can overwhelm quantum chips [5] - IBM aims to construct a quantum computer named Starling by 2029, with the algorithm work completed a year ahead of schedule [5][6]