International Business Machines (NYSE: IBM), better known by its initials IBM, is proof that an old dog can always learn new tricks. IBM was founded back in 1911, and, despite being about a century older than most other tech companies, it's remained a highly adaptable company that often leads the pack in terms of innovation. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » And the comp ...

Quantum computing is the next big thing in tech, but you don't need to invest in any risky start-ups to profit from it.Quantum computing used to be one of those things you only read about in a science fiction novel, along with faster-than-light travel or teleportation. It might be part of everyday talk on the Starship Enterprise, but it's not real, right?Turns out it's very real, and it's one of the fastest-growing industries out there. McKinsey estimates the quantum computing market could grow from about $ ...

Core Insights - IBM is positioned as a leader in the quantum computing sector, which is anticipated to be the next major technological revolution despite current limitations in commercial applications [1][3]. Group 1: Quantum Computing Potential - Quantum computing has the potential to significantly impact various fields such as materials science, logistics, drug discovery, finance, cybersecurity, and artificial intelligence [3]. - Over the next decade, researchers are expected to overcome challenges like error correction, leading to real-world applications of quantum computers [3]. Group 2: IBM's Progress and Strategy - IBM has reported nearing $1 billion in cumulative signings related to quantum computing, collaborating with numerous partners including established companies, start-ups, and academic institutions [4]. - The company plans to demonstrate a clear example of quantum advantage by 2026, with the goal of developing the first fault-tolerant quantum computer by 2029 [5]. - IBM's new Nighthawk quantum processor features 120 qubits and 218 tunable couplers, which will be crucial in demonstrating quantum advantage [6]. Group 3: Financial Stability and Market Position - IBM's market capitalization stands at $277 billion, with a gross margin of 57.22% and a dividend yield of 2.27% [7]. - Unlike pure-play quantum computing companies that may struggle to secure funding, IBM has a clear roadmap and a strong history of quantum innovations, making it a favorable investment choice [7].

Core Viewpoint - The quantum computing sector may be experiencing a bubble, characterized by inflated stock prices driven by investor hype and fear of missing out, which could lead to significant declines when the bubble bursts [1][8]. Quantum Computing Stocks Analysis - Rigetti Computing has seen its stock price increase over 6 times in the past year, but it reported a net loss of approximately $201 million in Q3 2025, with an 18% year-over-year revenue decline [5][6]. - D-Wave Quantum's stock has surged over 440% in the last year, yet it reported a net loss of $140 million despite doubling its revenue year-over-year in Q3 [6]. - IonQ, the largest pure-play quantum computing company with a market cap of around $19 billion, experienced a 222% year-over-year revenue growth in Q3 but reported a substantial net loss of $1.1 billion [7]. Alternatives to Pure-Play Quantum Stocks - Major tech companies like Microsoft, Amazon, and IBM are heavily investing in quantum computing while generating revenue from other business segments, making them safer investment options [9]. - Microsoft is advancing quantum computing through its Azure platform and topological superconductors, but its overall investment thesis remains strong without reliance on quantum computing [10]. - Amazon, a leader in e-commerce and cloud services, is also involved in quantum computing through AWS and has developed the Ocelet quantum computing chip [12]. - IBM continues to be a significant player in quantum computing while primarily generating revenue from software and consulting [13]. Best Post-Bubble Quantum Computing Stock - Alphabet is identified as the best quantum computing stock to hold if the bubble bursts, as it leads in quantum computing advancements with its Google Quantum AI and Willow chip, which has made significant strides in quantum error correction [14][16]. - Alphabet's business model does not depend on quantum computing for success, as it remains a dominant player in the search engine market and is experiencing rapid growth in Google Cloud [17]. - The valuation of Alphabet is more attractive compared to other tech giants, with a forward price-to-earnings ratio of 23.3, making it a compelling option for investors looking to mitigate risks associated with a potential bubble burst [18].

Core Insights - The article discusses the advancements in AI technology by Quantum Computing Inc. (QCi) and IBM, highlighting their respective approaches and market positions in the AI industry [1][2]. Quantum Computing Inc. (QCi) - QCi is focused on developing quantum computers that utilize photons, which can operate at room temperature and be miniaturized, unlike IBM's current quantum technology [3]. - QCi's EmuCore quantum computer is designed for training AI models, offering faster data processing and lower energy consumption compared to traditional computers, although it reported only $384,000 in revenue for Q3 against operating costs of $10.5 million [5]. - The company raised $750 million through an equity offering in October to support its operations [5]. IBM - IBM's AI business generated $9.5 billion in Q3, contributing to total revenue of $16.3 billion, reflecting a 9% year-over-year increase [6][7]. - The company is developing its Nighthawk quantum processor, expected to achieve quantum advantage next year, which would enhance its AI capabilities significantly [8][9]. - IBM reported a net income of $1.7 billion in Q3 and has a dividend yield of over 2%, showcasing its profitability and commitment to returning value to shareholders [9][10]. Investment Comparison - IBM's strong sales and advancements in quantum computing position it as a more attractive investment compared to QCi, which has high operating costs and limited sales [13][14]. - QCi's price-to-sales (P/S) ratio has been significantly higher than IBM's, indicating that QCi's shares are overvalued relative to its sales performance [11][13]. - IBM's consistent dividend payments and established revenue streams make it a superior investment choice in the AI sector [14].

Core Insights - IBM has unveiled its new Nighthawk quantum processor, which is one of the fastest computers globally and is being utilized for various applications including medicine development, battery improvement, and enhancing financial performance [1][4]. Quantum Technology - The Nighthawk quantum processor is approximately 30% more efficient than its predecessor, showcasing significant advancements in quantum computing technology [3]. - The processor operates at extremely low temperatures, reaching 15 millikelvins, which is a thousand times colder than outer space, indicating the advanced cooling technology required for quantum operations [3]. Applications and Industry Impact - Quantum computing is positioned as a new computational tool that can solve previously unsolvable problems, enhancing the capabilities of artificial intelligence rather than replacing it [2][4]. - Companies such as Boeing, Moderna, and HSBC are already leveraging IBM's quantum technology for various purposes, including creating more durable aircraft, developing effective vaccines, and achieving better trading outcomes [4][5]. Competitive Landscape - The United States currently leads in the development of advanced quantum computers, but China is making substantial investments in this field, indicating a competitive landscape in quantum technology [5]. - The U.S. is expected to deploy its quantum capabilities by the end of the decade, highlighting the urgency and importance of advancements in this sector [5].