IBM CEO says quantum computing will have a 'measurable impact' on earnings by 2028 or 2029
IBM CEO Arvind Krishna expects quantum computing to reach a significant milestone by the end of the decade. During a recent interview, Krishna stated that the company anticipates quantum technology to provide a measurable impact on both revenue and earnings by 2028 or 2029. He suggests that by the end of the 2030s, this sector could represent a trillion dollars in value.
The timeline follows recent research from IBM and startup Algorithmiq. These companies successfully demonstrated a quantum advantage, showing that their hardware can solve specific computational problems more efficiently than traditional computers. This research focused on observing material behaviors that remain inaccessible to standard silicon-based systems.
Krishna claims these advancements will eventually result in practical improvements for industries that rely on high-level computational modeling. Specific areas mentioned include the design of more efficient batteries, the creation of advanced materials, progress in fusion energy, and the discovery of new medicines. While technical hurdles like error rates and hardware scaling persist, IBM remains committed to the development process.
To support these long-term goals, IBM is investing heavily in infrastructure. The company plans to build a dedicated quantum chip foundry, bolstered by a one-billion-dollar commitment from the U.S. Department of Commerce via the CHIPS incentive. IBM is matching that figure with an equal investment of its own funds.
This outlook serves as an attempt to calm investor concerns following a difficult quarter. After recent reports indicated that some clients delayed major capital projects, IBM stock faced significant pressure. Krishna clarified that these delays were temporary postponements rather than permanent cancellations. He noted that approximately 40% of those pending deals have already concluded, signaling that the core demand for their enterprise offerings remains intact despite broader market anxiety.