IBM’s Quantum Computing Leadership Earns Analyst Praise Amid Strategic Shift
Melius Research reaffirmed its Buy rating on IBM after visiting the company’s quantum lab and engaging with Jay Gambetta, Director of IBM Research. The firm highlighted IBM’s dominance in quantum computing, noting it operates more quantum systems than any competitor. Potential high-margin revenue from the technology could reach billions annually by 2029.
IBM’s 'Starling' quantum computers, built on a 200-qubit platform with advanced error correction, were singled out as a catalyst for future breakthroughs. The Qiskit developer ecosystem further solidifies IBM’s position as a frontrunner in the space.
Meanwhile, IBM announced workforce reductions as it pivots toward higher-margin software businesses. This strategic realignment coincides with heightened Wall Street scrutiny of its cloud and AI initiatives, though slowing cloud growth has raised execution concerns.
