Partnership fuels investor optimism as IBM prepares to launch its first quantum computer by 2029
Shares of Advanced Micro Devices (AMD) surged more than 6% on Friday following a Reuters report that IBM has successfully used AMD’s chips to run advanced quantum computing algorithms, marking a major step forward in their emerging partnership. IBM’s stock also gained roughly 6% on the news.
According to the report, a forthcoming research paper will detail how IBM leveraged AMD’s field-programmable gate array (FPGA) technology to run a quantum error-correction algorithm — a critical capability needed to make quantum computing more stable and commercially viable. Neither company has yet commented on the report, but excitement among investors reflects growing confidence in AMD’s expanding role beyond traditional semiconductors.
The development builds on a partnership announced in August, when AMD and IBM agreed to collaborate on integrating quantum computing capabilities and advancing chip architectures designed for next-generation computing. IBM has said it aims to launch a commercial quantum computer by 2029, a move that would put it in direct competition with other tech titans pursuing similar ambitions.
Companies like Google, Microsoft, and Amazon have also ramped up their quantum research efforts. Google’s recent Willow processor and Microsoft’s debut quantum chip represent significant milestones in a race to achieve quantum supremacy — the point at which quantum computers outperform classical ones on complex tasks.
The renewed momentum in quantum technology boosted related stocks, including D-Wave Quantum (QBTS), Rigetti Computing (RGTI), and IonQ (IONQ), all of which climbed in Friday trading.
As quantum computing inches closer to commercialization, AMD’s involvement in IBM’s ecosystem could position it as a key enabler of the next great leap in computing power — potentially expanding its footprint far beyond the traditional CPU and GPU markets.
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