IBM (NYSE: IBM) stock experienced a significant boost on Thursday after HSBC announced promising results from a trial using IBM’s quantum computing technology to enhance bond market price predictions.
The U.K.-based banking giant revealed that it leveraged IBM’s Quantum Heron processors to achieve a 34% improvement in predicting the likelihood of a bond trade being executed at its quoted price. This marked a notable advancement compared to traditional algorithmic techniques currently in use. HSBC applied the quantum technology to an anonymized dataset of European bond trading and concluded that it “could potentially offer superior solutions over standard methods which use classical computers alone,” according to the bank’s press release.
A Quantum Leap in Bond Trading
This trial represents an early but significant step in exploring how quantum computing could revolutionize financial markets. Philip Intallura, HSBC Group’s head of quantum technologies, described the experiment as “a groundbreaking world-first in bond trading.”
Quantum computers, which process information using qubits (quantum bits), operate at speeds far beyond those of traditional computers. While the technology is still in its infancy, its potential for scientific and technological breakthroughs has captured the attention of investors and industry leaders alike.
The buzz around quantum computing has intensified in 2025, with major tech players like Amazon (AMZN), Microsoft (MSFT), and Google-parent Alphabet (GOOGL) announcing their own advancements in the field. IBM has also been making strides, unveiling plans in June to build a large-scale quantum computing center in Poughkeepsie, N.Y., by 2029. Additionally, the company announced a partnership with Advanced Micro Devices (AMD) in August to develop “quantum-centric supercomputing” technology.
IBM Stock Performance
IBM’s stock rallied more than 5% on Thursday, reaching $282.89 in midday trading. Year-to-date, IBM shares have climbed 29%, outperforming the S&P 500. In contrast, HSBC’s stock dipped 1.5% during the same trading session.
Despite a challenging summer, where IBM shares dropped 14% in July following its Q2 earnings report and slid another 3% in August, the company has rebounded strongly. September has been a particularly strong month, with shares advancing 16% since the start of the month.
This recent surge has formed a 13-week-long cup pattern, as identified by IBD MarketSurge. The buy point for this pattern is $296.16, which would represent a return to the stock’s high point from late June.
As quantum computing continues to evolve, IBM’s advancements in the field could position the company as a leader in this transformative technology, driving further investor interest and market momentum.
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