IBM and AMD Team Up for Quantum Computing Advancements: Stocks Rise

IBM and AMD have partnered to advance quantum computing technology, focusing on developing next-generation computing architectures that combine quantum computers and high-performance computing. This collaboration has led to an increase in IBM stock and AMD shares in early trading. The partnership aims to leverage the strengths of both companies to push the boundaries of quantum computing.

IBM (IBM) and Advanced Micro Devices (AMD) have announced a strategic partnership to advance quantum computing technology. The collaboration, announced on Tuesday, aims to develop next-generation computing architectures that combine quantum computers and high-performance computing (HPC) [1].

The partnership leverages IBM's expertise in quantum computing and related software with AMD's experience in high-performance computing power and AI accelerators. The goal is to create a powerful hybrid model that surpasses the capabilities of traditional computing [1].

IBM Chief Executive Arvind Krishna stated, "By exploring how quantum computers from IBM and the advanced high-performance compute technologies of AMD can work together, we will build a powerful hybrid model that pushes past the limits of traditional computing" [1]. AMD Chief Executive Lisa Su added, "We see tremendous opportunities to accelerate discovery and innovation" [1].

Quantum computers, which rely on qubits or quantum bits, have the potential to process information at significantly faster rates than traditional computers. This technology has garnered attention from investors due to its potential for scientific and technological breakthroughs [1].

IBM has been proactive in the quantum computing field. In June, the company announced plans to build a large-scale quantum computing facility in Poughkeepsie, N.Y., by 2029 [1]. However, comments by Nvidia (NVDA) Chief Executive Jensen Huang earlier this year sparked debate about the commercial viability of the technology [1].

The partnership has had an immediate impact on the stock market. IBM stock is up more than 1% in premarket trading, while AMD shares have risen nearly 3% [1]. AMD stock has rallied 35% year-to-date, while IBM stock is ahead by 8% [1].

While IBM remains below its 200-day moving average, shares have rallied more than 30% in the first half of the year. However, the stock has slid nearly 20% since the start of July [1].

References:
[1] https://www.investors.com/news/technology/quantum-computing-ibm-amd-partnership-ibm-stock/