AMD Surges 8% as IBM Taps Its Chips for Breakthrough in Quantum Computing Error Correction
Advanced Micro Devices (AMD) shares surged nearly 8% on Friday after reports revealed that IBM successfully used AMD’s chips to run a quantum computing error correction algorithm — a major step forward in the development of scalable quantum systems.
IBM’s stock also jumped around 8%, marking its best single-day performance since January, as excitement around the collaboration gained momentum.
According to Reuters, a research paper set to be published next week will confirm that IBM leveraged AMD’s field-programmable gate array (FPGA) chips to execute quantum error correction algorithms — a crucial component in building reliable and fault-tolerant quantum computers.
The companies had previously announced a strategic partnership in August, aimed at advancing quantum computing technologies and integrating hardware and software innovations. IBM reaffirmed its commitment to unveiling a large-scale, fault-tolerant quantum computer by 2029, calling the new progress a “key milestone” toward that goal.
“Achieving this level of error correction at scale — and doing so without relying on expensive GPU clusters — represents a significant leap forward in making practical quantum computers a reality,” IBM said in a statement.
AMD has not yet released an official statement on the latest report.
Quantum computing — which harnesses the principles of quantum mechanics to process information far beyond the capabilities of traditional systems — has become one of the most competitive frontiers in the tech industry. Major players such as Google, Microsoft, and Amazon are all racing to bring quantum solutions into commercial use.
In 2024, Microsoft unveiled its first quantum processor, while Google announced progress on its chip codenamed Willow. A senior quantum executive at Google said earlier this year that practical, large-scale quantum computing could be “within five years.”
The surge in optimism has fueled strong market performance across the quantum computing sector. Shares of D-Wave Quantum, Rigetti Computing, and IonQ also climbed on Friday following the news.
Meanwhile, the Trump administration issued a statement denying reports that it was negotiating investment stakes in U.S.-based quantum technology companies.
This latest collaboration between AMD and IBM underscores how strategic hardware partnerships are accelerating breakthroughs in next-generation computing, positioning both companies at the forefront of the quantum revolution.
