Why IBM Is Well-Positioned to Become a Quantum Computing Leader

IBM (IBM) is well-positioned to emerge as a leader in quantum computing as the technology moves closer to real-world usefulness, according to Forbes. The tech company recently outlined its progress at the IBM Quantum Developers Conference, where it shared a clear roadmap to achieve "quantum advantage" as early as next year. For context, that would be the point where quantum computers outperform traditional machines for specific tasks.Claim 70% Off TipRanks This Holiday SeasonUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential IBM's approach stands out because it focuses not just on adding more qubits, but also on improving hardware, software, error correction, and fabrication all at once. Interestingly, a key part of this strategy is the firm's steady rollout of more powerful quantum processors. Indeed, IBM recently introduced its Nighthawk chip, which features 120 qubits and faster speeds compared to earlier designs. In addition, IBM plans to continue scaling its systems through 2028 in order to eventually link many chips together to perform more complex operations. At the same time, IBM is upgrading its Qiskit software platform to make it easier for developers to build and test quantum applications. IBM's advantage also comes from combining its deep research experience with tools that are already used by a broad developer community. Therefore, if the company can execute on its roadmap, it could play a key role in the early commercialization of quantum computing. Is IBM a Buy, Sell, or Hold? Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on 10 Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $303.71 per share implies that shares are trading near fair value.