IBM Accelerates the Quantum Race: Technological Revolution or Premature Promise?
By Ion Jauregui – Analyst at ActivTrades
IBM is once again at the center of the technology debate after unveiling two breakthroughs that could redefine the future of quantum computing. Its new experimental chip “Loon” and the “Nighthawk” processor reveal an ambitious roadmap: achieving useful quantum computers by 2026 and fault-tolerant systems before 2029. If successful, this endeavor could transform fields ranging from artificial intelligence to cybersecurity.
The Loon processor integrates error-correction algorithms inspired by mobile technology, an unusual approach aimed at addressing one of the main challenges in quantum computing: the fragility of qubits. However, building it is far from trivial. It requires more qubits and an increasing number of quantum connections, significantly raising manufacturing complexity.
At the same time, IBM introduced Nighthawk, a chip designed to run more complex quantum circuits, which, according to the company, could outperform classical computers in specific tasks by 2026. This technological duo positions IBM in a race alongside giants like Google and specialized startups that are already attracting billions in funding.
Fundamental: A Business Reinventing Itself, But Not Without Challenges
Beyond the media impact, IBM continues to consolidate its transition toward a software-, AI-, and hybrid-cloud-focused model, areas that provide higher margins. Its more traditional divisions—such as infrastructure—continue to pressure growth, forcing the company to rely on emerging segments and disruptive technology to support its narrative.
Quantum progress today is a driver of expectations, but it does not yet generate direct profits. Mass commercialization will take time, and competition does not stand still. Nevertheless, IBM maintains solid cash flow and an investment strategy aimed at capturing technological advantage in the coming years.
Technical: Key Levels and Mixed Signals
From a technical perspective, IBM shares display a constructive structure. The price is holding above the support that acted as an impulse zone during the last clear bullish movement. The range $262.57–$301.46 was breached, and its upper boundary now serves as a new floor for the current accumulation zone after reaching historical highs of $324.90 on Wednesday, November 12.
Currently, the RSI sits at 56.12%, and the MACD entering a negative histogram seems to indicate a consolidation phase. This construction zone needs to be solidified before moving toward $330. The previous impulse marks a Point of Control (POC) at $281.84 within the prior range, while the bell-shaped formation appears to be creating a third formation centered around yesterday’s price of approximately $305, serving as the current midpoint, relatively close to yesterday’s close.
A bearish scenario could push the price back toward the mid-range of the prior trading range. Finally, the ActivTrades US Market Pulse indicates neutrality leaning toward RISK OFF, suggesting that this general market correction could trigger increased pre-holiday institutional liquidation flows.
Raising the Bar on Expectations
IBM combines tradition and innovation at a critical moment: its quantum announcements reinforce a narrative of technological leadership while raising the bar of expectations. If Nighthawk and Loon meet the announced timelines, IBM could position itself at the forefront of the next computing revolution. Until then, the market will continue observing a stock with potential, albeit still dependent on execution and the internal transition of its core business.
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.
By Ion Jauregui – Analyst at ActivTrades
IBM is once again at the center of the technology debate after unveiling two breakthroughs that could redefine the future of quantum computing. Its new experimental chip “Loon” and the “Nighthawk” processor reveal an ambitious roadmap: achieving useful quantum computers by 2026 and fault-tolerant systems before 2029. If successful, this endeavor could transform fields ranging from artificial intelligence to cybersecurity.
The Loon processor integrates error-correction algorithms inspired by mobile technology, an unusual approach aimed at addressing one of the main challenges in quantum computing: the fragility of qubits. However, building it is far from trivial. It requires more qubits and an increasing number of quantum connections, significantly raising manufacturing complexity.
At the same time, IBM introduced Nighthawk, a chip designed to run more complex quantum circuits, which, according to the company, could outperform classical computers in specific tasks by 2026. This technological duo positions IBM in a race alongside giants like Google and specialized startups that are already attracting billions in funding.
Fundamental: A Business Reinventing Itself, But Not Without Challenges
Beyond the media impact, IBM continues to consolidate its transition toward a software-, AI-, and hybrid-cloud-focused model, areas that provide higher margins. Its more traditional divisions—such as infrastructure—continue to pressure growth, forcing the company to rely on emerging segments and disruptive technology to support its narrative.
Quantum progress today is a driver of expectations, but it does not yet generate direct profits. Mass commercialization will take time, and competition does not stand still. Nevertheless, IBM maintains solid cash flow and an investment strategy aimed at capturing technological advantage in the coming years.
Technical: Key Levels and Mixed Signals
From a technical perspective, IBM shares display a constructive structure. The price is holding above the support that acted as an impulse zone during the last clear bullish movement. The range $262.57–$301.46 was breached, and its upper boundary now serves as a new floor for the current accumulation zone after reaching historical highs of $324.90 on Wednesday, November 12.
Currently, the RSI sits at 56.12%, and the MACD entering a negative histogram seems to indicate a consolidation phase. This construction zone needs to be solidified before moving toward $330. The previous impulse marks a Point of Control (POC) at $281.84 within the prior range, while the bell-shaped formation appears to be creating a third formation centered around yesterday’s price of approximately $305, serving as the current midpoint, relatively close to yesterday’s close.
A bearish scenario could push the price back toward the mid-range of the prior trading range. Finally, the ActivTrades US Market Pulse indicates neutrality leaning toward RISK OFF, suggesting that this general market correction could trigger increased pre-holiday institutional liquidation flows.
Raising the Bar on Expectations
IBM combines tradition and innovation at a critical moment: its quantum announcements reinforce a narrative of technological leadership while raising the bar of expectations. If Nighthawk and Loon meet the announced timelines, IBM could position itself at the forefront of the next computing revolution. Until then, the market will continue observing a stock with potential, albeit still dependent on execution and the internal transition of its core business.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.
Thông báo miễn trừ trách nhiệm
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Thông báo miễn trừ trách nhiệm
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.