IBM (IBM) announced this week that it is teaming up with AMD (AMD) to develop next-generation computing architectures by combining quantum computers with high-performance computing (HPC), also known as quantum-centric supercomputing.
The companies said they will explore ways to integrate AMD CPUs, GPUs, and FPGAs with IBM quantum systems to accelerate a new class of algorithms. These algorithms, IBM noted, “are outside the current reach of either paradigm working independently.”
AMD’s hardware has shown potential for real-time error correction. That capability could help IBM achieve its goal of building the world’s first large-scale, fault-tolerant quantum computer by the end of the decade.
Arvind Krishna, IBM’s chairman and CEO, said that by “exploring how quantum computers from IBM and the advanced high-performance compute technologies of AMD can work together, we will build a powerful hybrid model that pushes past the limits of traditional computing.”
The first milestone will come later this year, when IBM and AMD plan to demonstrate how quantum systems can run hybrid workflows alongside AMD hardware.
“High-performance computing is the foundation for solving the world’s most important challenges,” said AMD chair and CEO Dr. Lisa Su.
“As we partner with IBM to explore the convergence of high-performance computing and quantum technologies, we see tremendous opportunities to accelerate discovery and innovation.”
For AMD, the IBM tie-up adds momentum to an already strong run. The stock is up nearly 40% this year.
IBM deal earns AMD an upgrade
Truist analysts upgraded the stock to Buy from Hold after the partnership announcement, boosting their price target more than 20% to $213 from $173 per share.
Truist highlighted stronger data center and AI traction, writing that “industry contact feedback turns constructive on AMD’s DC/AI growth.”
Analysts also noted a shift in how hyperscalers are engaging with AMD, reaching out in a “partnership manner” rather than simply using it as a “price check” against Nvidia (NVDA).
“Recently, they have told us that hyperscale customers are working with AMD as a potential partner rather than simply as a ‘price check’ to NVDA,” the analysts wrote. “This change in messaging from the field is the basis of our upgrade.”
Nvidia remains the default choice for AI GPUs. In a recent Wired interview, Su was asked whether she hopes AMD will eventually replace Nvidia as the industry’s go-to partner.
“That’s where we are today in CPUs. So if you were to ask many of those same companies, I think they would say that AMD is their strategic CPU partner,” Su said. “And absolutely, we expect to be there in AI as well. But I’m not impatient with this.”
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