IBM Advances to Phase B in DARPA’s Quantum Computing Race – A Game Changer for Tech?
IBM just scored a major win in the quantum arms race. The tech giant secured its spot in Stage B of DARPA’s quantum computing initiative—putting it ahead in the scramble for Pentagon funding and next-gen supremacy.
Why it matters: Quantum computing could crack encryption, optimize portfolios, and render today’s blockchain security obsolete overnight. IBM’s progress signals the tech is inching toward commercialization—though Wall Street will probably find a way to turn it into another speculative ETF before it actually works.
The cynical take: If history’s any guide, this ‘breakthrough’ will be followed by a 5-year timeline extension, a 200% budget overrun, and a vague partnership announcement with a crypto startup that somehow pumps their token 300%.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Unsurprisingly, being chosen for Stage B is a major step for IBM as DARPA continues to review various methods for building large-scale quantum systems. Indeed, Jay Gambetta, Director of IBM Research, stated, “IBM’s progression to Stage B of DARPA’s Quantum Benchmarking Initiative is a firm validation of IBM’s approach to delivering a large-scale, fault-tolerant quantum computer.”
Interestingly, participants in Stage B must present a detailed research and development plan that explains how they intend to build a cost-effective and reliable quantum computer, while including any potential risks and the strategies for addressing them. In contrast, Stage A, completed earlier this year, focused on technical concepts that showed a realistic path to developing such a system. The next phase, Stage C, will see DARPA’s independent verification team test each company’s quantum hardware to confirm its performance and potential for real-world use.
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 2.6% downside risk.
