Copyright Benzinga
Shares of International Business Machines Corporation (NASDAQ:IBM) are rising Wednesday after the company announced several significant technological advancements. IBM stock is at important technical levels. See what is driving the movement here. What To Know: IBM unveiled Quantum Nighthawk, the company’s most advanced quantum processor yet. The company said the processor will help quantum computers solve problems better than all classical-only methods. It’s expected to be delivered to IBM users by the end of this year. IBM stock jumped about 3% on the news, according to Benzinga Pro. IBM anticipates that the first cases of verified quantum advantage will be confirmed by the wider community by the end of 2026. IBM is also rapidly delivering milestones towards building the world's first large-scale, fault-tolerant quantum computer by 2029, thanks to advancements with an experimental processor called Quantum Loom. IBM also announced the primary fabrication of its quantum processor wafers is being undertaken at an advanced 300mm wafer fabrication facility at the Albany NanoTech Complex in New York. The technology has already cut the time needed to build each new processor by at least half, achieved a ten-fold increase in the physical complexity of its quantum chips and enabled multiple designs to be researched and explored in parallel. "There are many pillars to bringing truly useful quantum computing to the world," said Jay Gambetta, Director of IBM Research."We believe that IBM is the only company that is positioned to rapidly invent and scale quantum software, hardware, fabrication, and error correction to unlock transformative applications. We are thrilled to announce many of these milestones today." IBM Quantum Nighthawk offers 120 qubits linked together with 218 next-gen tunable couplers. The increased qubit connectivity will allow users to accurately execute circuits with 30% more complexity than on IBM’s previous processor while maintaining low error rates. IBM Analysis: IBM is trading approximately 14.5% above its 50-day moving average of $282.16 and about 22.6% above its 200-day moving average of $263.43. This positioning suggests that the stock is in a strong uptrend, with the moving averages providing a solid foundation for potential pullbacks. The relative strength index (RSI) at 65.48 indicates that the stock is nearing overbought territory, which could lead to increased volatility as traders assess the sustainability of this rally. The calculated support level stands at $296.00, which could act as a safety net should the stock experience a pullback. Given the proximity to the 52-week high, any further upward movement may encounter resistance around this level, making it a focal point for traders looking for breakout opportunities. In comparison to its peers, IBM’s market capitalization of $288.95 billion positions it as a mid-sized player in the tech sector, significantly smaller than giants like Microsoft and Nvidia. This relative size may provide IBM with unique opportunities for growth as it carves out its niche in the competitive landscape. IBM Price Action: IBM shares were up 2.36% at $321.02 at the time of publication on Wednesday. The stock is trading near its 52-week high of $324.89. Read More: IBM Takes Big Leap Toward Quantum Advantage, Stock Up 3% Image: Shutterstock.com
