By Sam Boughedda
In a note to clients on quantum computing on Tuesday, a Bernstein analyst said IBM (NYSE:) is currently among the industry leaders in the space.
The analyst currently has a Market-Perform rating and a $145 per share price target on the stock.
“Error-mitigation techniques, QEC, have been introduced by players such as IBM, Google (NASDAQ:), and Quantum (NASDAQ:) Firmware but require a high number of qubits to identify and fix errors,” explained the analyst. “Encouragingly, Quantum machines are expected to evolve at an exponential rate, with IBM outlining a roadmap to get to 4000 qubits by 2025, 100K by 2029 and 1M by 2032.”
Speaking on the stringent operating conditions needed for quantum computing, the analyst explained that “Qubits are extremely sensitive to temperature, sound, and dust, and they must be isolated to operate according to the laws of quantum physics. Today, most Quantum machines use superconducting qubits that require extreme operating conditions. For example, IBM runs its Quantum Lab at close to 0K (~200x colder than deep space).”
Looking ahead, Bernstein sees Quantum machines “largely being offered as-a-Service,” which is how Quantum is currently being offered.
“For example, IBM charges ~$1M/year over a 3-year contract for accessing its high-end quantum systems, which are by used service providers and other firms, such as Quantinuum in providing solutions for clients,” added the analyst.
