IBM CEO says quantum computing will have a 'measurable impact' on earnings by 2028 or 2029
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Arvind Krishna said on CNBC's "Mad Money" that quantum computing will have a "measurable impact" on IBM's top line and bottom line by 2028 or 2029, and projected "a trillion dollars of value" by the end of the 2030s.
- IBM and Algorithmiq unveiled new research Thursday demonstrating quantum advantage, showing a quantum computer could solve certain problems more efficiently than today's leading classical computers while also verifying the results.
- Krishna said IBM's quantum computer uncovered material behaviors researchers couldn't observe with conventional computing, pointing to eventual applications in better batteries, advanced materials, fusion energy, and smarter medicines.
- IBM announced in May plans to build a standalone quantum chip foundry backed by a $1 billion U.S. Department of Commerce commitment through the CHIPS incentive plus a matching $1 billion from IBM itself.
- IBM shares dropped 25% on July 14 — the stock's worst single-day decline on record — after an earnings update flagged customer spending delays and AI threats to its software business; shares have since recovered just 2%.
- Krishna reassured investors the delayed deals are deferrals, not cancellations, noting roughly 40% had already closed within three to four weeks.
- Alphabet and Rigetti Computing are named as rivals racing alongside IBM to commercialize quantum computing.
Why it matters: Coming off a 25% single-day stock crash and lingering questions about AI threats to its software franchise, IBM is using a 2028–2029 quantum earnings timeline and a trillion-dollar 2030s projection to convince investors it has a next-leg growth story; whether Algorithmiq-validated quantum advantage can translate into real enterprise revenue is the bet now being priced.
