IBM (IBM) could see a boost from a planned $2 billion US investment in quantum computing companies, including up to $1 billion for IBM, as the government looks to accelerate innovation and strengthen domestic quantum supply chains, Wedbush said in a note Thursday.
Wedbush said CEO Arvind Krishna has stated IBM's quantum business "could generate billions of dollars of annual sales with high profit margins" by the mid-2030s, with the company making progress toward introducing an error-correcting decoder in 2028 and its first fault-tolerant quantum computer in 2029.
The brokerage said IBM is "in the early innings of unlocking benefits at the crossroads of AI and quantum," adding that government funding would provide "a more stable pathway to advance quantum computing developments." Wedbush also said IBM's positioning "at the forefront of AI and quantum remains underappreciated."
Wedbush maintained its outperform rating and $320 price target on IBM.
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