Remember when IBM was that company your dad’s office used for everything? Well, plot twist: Big Blue just became the cool kid on the quantum computing block, and even Wall Street’s paying attention.
Here’s what happened: HSBC (yes, the bank) just wrapped up what they’re calling the “first known quantum-enabled algorithmic trading trial” using IBM’s quantum systems. And get this – they improved their bond trading predictions by up to 34%. That’s not a typo. Thirty-four percent better at predicting which trades would actually make money.
For context, that’s like going from getting a C+ on your math test to suddenly acing it. In trading terms, that’s the difference between “meh” profits and “holy cow, did we just crack the code?” profits.
IBM stock jumped over 5% on the news, which in today’s market is basically a standing ovation. But here’s the thing everyone’s missing while they’re busy throwing money at quantum computing startups with names that sound like rejected Star Wars planets: IBM has been quietly dominating this space for decades.
Think about it. While everyone else is playing quantum computing startup roulette, IBM is sitting there with deep pockets, actual working quantum computers, and – here’s the kicker – other profitable businesses that can fund their quantum research even when the market gets cranky.
Most quantum startups? They’re basically running on venture capital fumes and hope. IBM? They’re running on cold, hard cash from their cloud business (up 16% in Q2), automation revenue (also up 16%), and software sales ($7.4 billion and growing).
The HSBC deal isn’t just a one-off either. It’s proof that quantum computing is finally moving from “cool science experiment” to “actual business tool that makes actual money.” And if quantum computing goes mainstream – which, let’s be honest, it probably will – IBM is positioned to be the next Nvidia.
Remember when everyone thought Nvidia was just a graphics card company for gamers? Then AI happened, and suddenly they were the most important company in tech. IBM could be having that same moment with quantum computing.
The beauty of IBM’s position is that they don’t need quantum computing to work out perfectly right now. Their other businesses are humming along nicely, giving them the luxury of time to perfect their quantum tech while competitors burn through cash trying to catch up.
So while everyone’s debating whether we’re in an AI bubble (spoiler: we probably are), IBM is quietly building the infrastructure for the next computing revolution. And unlike some of the flashier tech stocks that shall remain nameless (*cough* every meme stock ever *cough*), IBM actually has the fundamentals to back up the hype.
The stock is already rallying above $300, and if they keep delivering quantum breakthroughs like this HSBC partnership, we might be looking at the early stages of something much bigger. Sometimes the tortoise really does beat the hare – especially when the tortoise has quantum computers.