Overview
- At the Hot Chips conference on Aug. 24, IBM revealed a 2nm, 11-core mainframe processor that can natively run IBM Z and Arm instruction sets and includes on-chip AI inference and encryption accelerators.
- On Aug. 19, IBM said it had joined and cooled two modular cryogenic quantum systems into a single environment below 15 millikelvin, a step the company says supports its goal of a Starling system by 2029.
- IBM reported weak near-term finance figures on July 22, with Q2 revenue up about 1% to $17.2 billion and IBM Z mainframe revenue falling roughly 42%, prompting management to lower full-year revenue growth guidance.
- The market response has been muted: shares rose only modestly after the quantum news and remain down about 21% year-to-date, reflecting investor caution that milestones need to show up in sales.
- Analysts are mixed but generally positive with a Moderate Buy consensus and an average price target near $251.87, while IBM has pledged more than $10 billion over five years to advance its quantum roadmap and related investments.