$IBM(IBM)$ IBM is down -17.34% from its 52-week high, and it has retraced to the 50% Fibonacci level.
Looking ahead, the company has a clear roadmap for quantum computing. They anticipate releasing the error-corrected supercomputer "Starling" in 2029, with an even more performant system following in 2032. The U.S. Commerce Department is backing this with a $1B investment for IBM's quantum chip foundry.
The CEO mentioned plans to invest over $10B in quantum computing over the next 5 years, focusing on fault-tolerant systems, Qiskit, manufacturing scale, and ecosystem partnerships. He said, "...we'll come and shock everybody three years from now... we have about 300 institutions, clients, governments who work with us deeply on quantum, so I think some fraction of people do get it, quite deeply."
On another front, IBM and Google are launching the Google Cloud Practice, designed to help organizations scale AI into production faster by combining IBM's industry expertise with Google Cloud's Gemini platform.
In cybersecurity, IBM and Red Hat are investing $5B into "Project Lightwell" to address vulnerabilities in open-source software. The CEO noted that Anthropic's Mythos model was the "critical triggering factor," having identified nearly 3,900 high- or critical-severity vulnerabilities. Early adopters include Bank of America, Goldman Sachs, Morgan Stanley, JPMorganChase, and Visa.
Financially, IBM's forward P/E is around 22x, with estimated EPS growth of +7.21% and revenue growth of +5.82% year over year. The dividend yield is 2.46%.
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