Advanced Micro Devices (AMD) stock soared on Friday after tech company International Business Machines (IBM) commented on the use of the semiconductor company’s chips for quantum computing tasks. According to IBM, common chips from AMD can be utilized for algorithms that are key to quantum computing, reports Reuters.
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AMD’s use in quantum computing is tied to inherent flaws in the system. The qubits used can produce large amounts of data in little time, but are prone to errors. That’s where AMD comes in. Processors developed by the company are powerful enough to correct these mistakes, helping maintain a quick turnaround time for results with fewer errors. IBM noted that the AMD chips it used for this weren’t “ridiculously expensive.”
The chips that IBM used for its quantum computing correction algorithm were field-programmable gate array (FPGA) models made by AMD. The company wrote its own algorithm to use these chips alongside its quantum computing systems. IBM’s decision to base this algorithm on chips from AMD is a huge boon to the company, which has been working to challenge rival Intel (INTC) in consumer and AI sectors.
AMD Stock Movement Today
AMD stock was up 5.36% on Friday, extending a 104.97% year-to-date rally. The shares have also increased 50.41% over the past 12 months. The positive movement for AMD stock is tied to the AI boom, as demand for its server components has increased. News of its use in quantum computing could boost shares even higher.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 29 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $249.92, representing a potential 0.63% upside for the shares.
