What's Happening?
Shares of Advanced Micro Devices (AMD) and International Business Machines (IBM) surged to record highs following a breakthrough in quantum computing. IBM discovered that a key quantum computing error-correcting algorithm could be run on a chip made by
AMD, specifically a field programmable gate array semiconductor. This development marks significant progress in making quantum computers more commercially viable. AMD's stock rose nearly 7%, while IBM's stock increased by more than 7%, contributing to a 40% year-to-date gain for IBM, making it the second-biggest gainer in the Dow Jones Industrial Average in 2025.
Why It's Important?
The breakthrough is crucial for IBM as it advances the commercial viability and reliability of quantum computers, which use qubits to solve problems much faster than conventional computers. For AMD, the development showcases the importance of affordable and flexible chips in advanced research, extending its reach in next-generation computing. The ability to run quantum algorithms efficiently is a significant step forward in overcoming the error-prone nature of qubits, a major challenge in quantum computing. This progress could lead to more widespread adoption and integration of quantum computing technologies.
What's Next?
IBM plans to build a quantum computer named Starling by 2029, with the algorithm work completed a year earlier than expected. This timeline suggests accelerated development in quantum computing capabilities. As the technology becomes more reliable, it could lead to increased investment and interest from industries looking to leverage quantum computing for complex problem-solving. The collaboration between AMD and IBM may also pave the way for further partnerships and innovations in the quantum computing space.
