IBM (IBM) has been spearheading quantum computing research for decades, and it has been a crucial goal of the company to develop a commercially viable quantum computer. That effort has been under the radar, but the market has been warming up to IBM as growth is accelerating with new quantum computing advancements.

IBM [was] up more than 5% [Wednesday] after HSBC reported a successful quantum-enabled bond-trading trial using IBM’s quantum computing that improved win-probability predictions by up to 34%. HSBC announced it completed what it called the first known quantum-enabled algorithmic trading trial using IBM’s quantum systems. It managed to improve predictions for winning customer inquiries in European corporate bonds by up to 34% compared to classical methods.

This is yet another feather in IBM’s cap and shows there’s plenty of opportunity across multiple sectors.

More gains ahead for IBM stock
IBM’s quantum computing capabilities are still underappreciated. The market has been pouring into quantum computing startups, but they may be missing the forest for the trees. IBM has dominated the space for a long time and remains ahead. It has deep pockets and other profitable business segments to continuously fund quantum computing research regardless of the market environment. On the other hand, most quantum computing startups have raised their cash through at-the-market offerings.

If quantum computing goes mainstream in the future, IBM is the most likely company to be “the next Nvidia”. In the meantime, IBM’s cloud computing sales are picking up, with Hybrid Cloud up 16% in Q2 2025. Automation revenue also grew 16%, and Software grew 10% to $7.4 billion.

If it can sustain that growth and attain more quantum computing breakthroughs in parallel, IBM stock can maintain the rally above $300 and beyond.

— Omor IE

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Source: Money Morning