Barclays says IBM is mimicking Nvidia's playbook in quantum market. How the stock could gain 50%

IBM has taken a massive leap into the quantum computing market, and investors could reap the rewards of its investment into the futuristic technology, according to Barclays. The bank initiated coverage of the original technology stock name with an overweight rating, giving it s 12-month price target of $350, implying 18% upside from Friday's close. IBM rallied more than 8% Monday. In its most optimistic bull case, Barclays has a price target of $449 on IBM, or 51% above the last close. "We see mid single digit organic revenue growth and ongoing margin leverage, which should create a stable earnings compounder with a Quantum option — a good combination and hence our Overweight rating," analysts led by Raimo Lenschow wrote Monday in a report. "IBM has a compelling opportunity ahead around quantum computing that could accelerate growth if successful." IBM recently pledged to invest more than $10 billion in quantum computing over the next five years, with the goal of creating fault-tolerant quantum computers by 2029, according to a filing to federal securities regulators on May 28. The push follows Nvidia 's moves to lead advances in quantum computing. In April, the leading AI chipmaker unveiled Ising , a family of open-source artificial intelligence models to accelerate the adoption of the futuristic technology. A burgeoning industry The quantum computing market was worth just $1.4 billion in 2024, according to market research firm Grand View Research. …