At its annual Quantum Developer Conference, tech giant IBM (IBM) introduced a new chip called IBM Quantum Nighthawk, which it says could outperform traditional computers on certain tasks by the end of 2026. The chip includes 120 quantum bits, or qubits, connected in a way that lets it handle more complex problems while keeping errors low. IBM expects future versions to become even more powerful and handle up to 15,000 operations by 2028.
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Alongside hardware, IBM is improving its quantum software platform, Qiskit. The company said that the latest updates make quantum programs more accurate and cheaper to run, even as systems scale beyond 100 qubits. In addition, a new version of Qiskit now works with high-performance computers, thereby allowing scientists and developers to write quantum programs using tools like C++. IBM plans to add more tools by 2027 to help solve real-world problems in science, chemistry, and artificial intelligence.
IBM also introduced a new test chip called IBM Quantum Loon, which is designed to help fix the errors that naturally happen in quantum systems. This chip includes new technologies that connect distant qubits and correct mistakes in less than half a microsecond. To support its growing quantum program, IBM is now building its chips at a high-tech facility in Albany, New York. The company says that this has helped it build chips faster, test more designs at once, and speed up its path toward a fault-tolerant quantum computer by 2029.
Is IBM a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on seven Buys, six Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $295.18 per share implies 3.2% downside risk.
