Key Takeaways IBM partnered with AMD to build scalable, open-source quantum-centric supercomputing platforms.Qiskit updates include AI-driven circuit optimization, 39x faster performance and lower memory use.New Qiskit services, including Runtime, Code Assistant and Serverless, enhance user quantum capabilities.International Business Machines Corporation (IBM) continues to push the boundaries of quantum technology to explore solutions to complex problems beyond the reach of classical computing. The company ...

Key Points Quantum computing can meet AI's enormous computational and energy needs. Several tech businesses are leading the push to combine AI with quantum computing. Nvidia, IBM, and IonQ possess different strengths to capitalize on bringing quantum computing to AI. 10 stocks we like better than International Business Machines › Organizations and governments around the world are rushing to adopt artificial intelligence (AI). Yet downsides exist. AI requires massive computing capabilities and the ...

Industry Overview - Quantum computing is projected to become a $200 billion market by 2040, with significant growth expected in the broader quantum technology market, which could reach nearly $100 billion by 2035 and double by 2040 [2] - The combination of artificial intelligence (AI) and quantum computing is anticipated to drive a new era of innovation, leveraging the immense computing power required by AI [2] Company Analysis - **Nvidia**: A leader in providing parallel processing chips for AI data centers, Nvidia is developing quantum-accelerated computing through its CUDA-Q programming platform, which integrates quantum and classical systems for real-world applications [5][6][8] - **Microsoft**: With its Majorana 1 quantum processing unit and a strong presence in cloud services through Azure, Microsoft is well-positioned in the quantum computing space. The company has a robust financial standing, with a market cap of $3.7 trillion and a history of consistent dividend payments [9][10][11][12] - **IBM**: A key player in quantum computing, IBM has deployed 13 utility-scale quantum computers and is approaching $1 billion in cumulative bookings. Its Qiskit platform supports nearly 5,000 projects, indicating strong developer engagement [13][14][15][16]

Core Insights - The article discusses the competitive landscape of quantum computing, focusing on Rigetti Computing and IBM as key players in the industry, highlighting their distinct approaches and market strategies [1][2]. Company Overview - Rigetti Computing is a startup that emphasizes cutting-edge quantum processors and scalable systems, while IBM utilizes its extensive experience to create a comprehensive quantum ecosystem that includes hardware, software, and cloud services [1][2]. - Rigetti's stock has decreased by 8.2% year-to-date, whereas IBM's stock has increased by 17.6% in the same period [3]. Valuation - IBM's price/book ratio is 8.92, which is more attractive compared to Rigetti's 19.43 [5]. Technology - Rigetti's Ankaa-3 system features 84 superconducting qubits with approximately 99.5% two-qubit gate fidelity, and it plans to launch a 36-qubit system in mid-2025, aiming to exceed 100 qubits by year-end [8]. - IBM's 133-qubit Heron processor improves upon its predecessor, and its modular architecture supports interconnecting processors like the 1,121-qubit Condor, forming the backbone of Quantum System Two [9]. Business Model - Rigetti's business model is hardware-focused, monetizing through direct system access and partnerships, targeting niche enterprise and research segments [10]. - IBM's model combines hardware, software, and services, commercializing through cloud access and consulting, with over $1 billion in cumulative quantum revenue [11]. Growth Strategies - Rigetti aims to scale its modular systems and achieve a 108-qubit system by the end of 2025, supported by a $250 million partnership [12]. - IBM's strategy focuses on achieving quantum advantage by 2026, leveraging its global infrastructure and enterprise partnerships [13]. Financial Estimates - The Zacks Consensus Estimate for Rigetti's 2025 sales indicates an 18.63% year-over-year decline, while IBM's estimates imply a 5.5% growth [14][15]. - Rigetti's projected loss per share for 2025 is 5 cents, compared to IBM's earnings estimate of $10.95 per share [14][16]. Investment Outlook - IBM holds a Zacks Rank 3 (Hold) with a strong Growth Score of 'A', while Rigetti has a Zacks Rank 4 (Sell) but a Growth Score of 'B', indicating potential upside [16][17]. - IBM's full-stack capabilities and enterprise reach provide a more stable investment option compared to Rigetti's innovative but smaller-scale approach [17].

Core Insights - Quantum computing is poised to unlock trillions of dollars in value by 2040, with its ability to solve complex problems much faster than traditional computers [1] - Recent advancements in qubit stability and error correction are bringing quantum computing closer to mainstream commercial use, with potential transformative impacts across various sectors [2] Company Summaries - **Amazon (AMZN)** is leveraging its AWS cloud infrastructure to democratize quantum computing through Braket, potentially creating a new multibillion-dollar revenue stream as it becomes a go-to quantum cloud provider [5] - **Alphabet (GOOGL)** continues to advance its quantum efforts with the Willow chip, which shows significant improvements in error reduction, positioning the company to commercialize breakthroughs that could transform its core businesses [6][7] - **IBM (IBM)** leads in enterprise quantum computing with over 60 quantum systems deployed globally and a comprehensive software platform, giving it a first-mover advantage in capturing corporate quantum spending [8] - **Microsoft (MSFT)** is pursuing a topological qubit approach and building a comprehensive Azure Quantum ecosystem, which could lock in corporate customers for decades [9] - **D-Wave Quantum (QBTS)** focuses on quantum annealing systems that generate revenue today, positioning itself as a near-term winner in commercial quantum computing [10] - **IonQ (IONQ)** develops trapped ion quantum computers with superior qubit connectivity, demonstrating real-world applications and offering direct exposure to quantum computing's growth potential [11] - **Rigetti Computing (RGTI)** provides end-to-end quantum solutions and controls its technology stack, combining startup agility with the necessary vertical integration for commercial viability [12] - **Nvidia (NVDA)** powers quantum computing through its CUDA-Q platform, enabling significant speedups for quantum simulations and ensuring profitability from quantum breakthroughs regardless of hardware approach [13][14]