TLDR
- AMD stock jumped nearly 8% after reports that IBM will use AMD chips for quantum computing error correction
- IBM plans to launch a large-scale quantum computer by 2029 using AMD’s field-programmable gate array chips
- AMD previously announced major deals with OpenAI and Oracle, committing to supply GPUs for AI infrastructure
- The company reported Q2 2025 revenue of $7.69 billion, up 32% year-over-year
- AMD stock hit an all-time high of $243.11 in October 2025, up 90% year-to-date
AMD shares jumped on Friday after Reuters reported that IBM successfully ran a quantum error correction algorithm on AMD’s field-programmable gate array chips. The report will be published in a paper next week. An IBM spokesman confirmed the news to CNBC.
Just 2 days after Google, we have another big quantum computing breakthrough
IBM says one of its key quantum error correction algorithms now can run in real time on AMD FPGA (field programmable gate array) chips, no exotic hardware is needed.
This breakthrough could make… pic.twitter.com/yzj09tNaNV
— Dr Singularity (@Dr_Singularity) October 24, 2025
IBM shares also gained about 8% on the same day. The stock headed for its best day since January. The two companies announced a partnership in August to develop quantum computing capabilities.
International Business Machines Corporation, IBM
IBM plans to launch a large-scale fault-tolerant quantum computer by 2029. The company called this development a milestone toward that goal. IBM stated that implementing the technology without expensive GPU clusters is an achievement for scaling quantum computers.
Quantum computing uses quantum mechanics to solve problems traditional computers cannot handle. Tech giants Google, Microsoft, and Amazon are also developing quantum computing technology. Google launched its Willow chip, while Microsoft rolled out its first quantum chip last year.
Quantum Computing Stocks Rise
The announcements boosted stocks in the quantum computing sector. D-Wave Quantum, Rigetti Computing, and IonQ all climbed on Friday. The Trump administration denied a report on Thursday that it was negotiating stakes in quantum companies.
AMD stock reached an all-time high of $243.11 on October 24, 2025. The stock has surged 90% year-to-date. AMD’s market capitalization now exceeds $381 billion.
The chipmaker announced major AI partnerships on October 6. AMD will supply GPUs to OpenAI for 6 gigawatts of computing capacity. The company also agreed to deploy 50,000 MI450 Instinct GPUs with Oracle Cloud starting in Q3 2026.
These deals are projected to generate tens of billions in annual revenue. Cumulative sales could exceed $100 billion according to company statements. AMD’s CFO Jean Hu said the OpenAI agreement should deliver tens of billions in revenue.
Strong Financial Performance
AMD reported Q2 2025 revenue of $7.69 billion, up 32% year-over-year. The company guided Q3 2025 revenue to approximately $8.7 billion. Full-year 2025 sales targets approach $33 billion.
AI-related products now account for 21% of AMD’s total revenue. Data center revenue hit $3.2 billion with 14% growth. CEO Lisa Su credited product rollouts for the strong performance.
AMD faces a $1.5 billion revenue headwind in 2025 from U.S. export restrictions on AI chip shipments to China. The company currently trades at a P/E ratio of 140.52. Approximately 60-65% of analysts rate AMD as a Buy with a consensus target of $249.92.
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