AMD Stock Skyrockets with IBM’s Adoption of Its Chips for Quantum Computing

Basio badr

ago 3 hours

AMD Stock Skyrockets with IBM’s Adoption of Its Chips for Quantum Computing

Advanced Micro Devices (AMD) experienced a significant surge in stock price on Friday, largely driven by International Business Machines (IBM) announcing the use of AMD chips in quantum computing applications. IBM indicated that AMD’s common chips could effectively support the algorithms fundamental to the functionality of quantum computers, according to a report by Reuters.

AMD Chips in Quantum Computing

The integration of AMD’s technology addresses critical challenges within quantum computing. Quantum bits, or qubits, generate vast amounts of data rapidly but are susceptible to errors. AMD processors are designed to efficiently correct these errors, ensuring faster and more reliable results.

IBM’s Adoption of AMD Technology

IBM’s implementation of AMD chips was acknowledged as a cost-effective solution for enhancing quantum computing algorithms.
The specific chips utilized are field-programmable gate arrays (FPGAs) developed by AMD.
IBM created a proprietary algorithm that works seamlessly with these chips alongside its quantum computing systems.

This strategic decision positions IBM to better compete against rival Intel in both consumer markets and AI sectors, marking a significant development for both companies.

AMD Stock Performance

On the same day as the IBM announcement, AMD stock rose by 5.36%. This increase contributes to an impressive year-to-date growth of 104.97%. Over the past year, shares have appreciated by 50.41%, fueled by rising demand for AMD’s server components amid the ongoing AI boom.

Analysts suggest that news of AMD’s engagement in quantum computing could further elevate stock prices.

Analyst Consensus on AMD

According to recent analyses on Wall Street, AMD holds a Moderate Buy rating. This is based on the consensus from 29 Buy ratings and 10 Hold ratings issued in the past three months. The average price target for AMD stock currently stands at $249.92, indicating a potential upside of 0.63% from current levels.