What Is One of the Best Quantum Computing Stocks to Buy Now?
Key PointsQuantum computers are still in their infancy, limiting real-world applications.
IBM has achieved a number of technological advances in the field, such as its popular Qiskit software platform.
While pure-play quantum computing companies aren't profitable, IBM's free cash flow and net income are growing year over year.
- 10 stocks we like better than International Business Machines ›
Quantum computers are still in their infancy, limiting real-world applications.
IBM has achieved a number of technological advances in the field, such as its popular Qiskit software platform.
While pure-play quantum computing companies aren't profitable, IBM's free cash flow and net income are growing year over year.
Many quantum computing stocks have captured the spotlight over the past year. But one tech giant is quietly progressing on its quantum computer ambitions, and it offers financial strength and a robust dividend. That company is IBM (NYSE: IBM).
Quantum technology is still in its early days. That means the business with the strongest tech can win the day. IBM is poised to achieve major technological milestones, which would position it as a key player in the industry.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
IBM's quantum computing strengths
While many pure-play quantum computer companies, including IonQ, aren't profitable, IBM reported second-quarter net income of $2.2 billion, up from $1.8 billion in 2024. It predicts 2025 free cash flow to surpass $13.5 billion, an increase over $12.7 billion in the prior year, indicating strong capacity to finance dividends, reduce debt, and invest in areas such as quantum computing.
Along with this solid foundation, Big Blue has notched several tech victories in the space. It was the first to put a quantum computer in the cloud. It owns Qiskit, the most widely used quantum computer software, according to the company.
But perhaps the biggest milestone is yet to come. IBM expects to reach quantum advantage by the end of 2026. This represents the point where a quantum computer can address real-world computational challenges more efficiently than any classical computer, marking a pivotal shift into the quantum computing era.
If Big Blue achieves this goal, the next is to deliver a fault-tolerant quantum machine by 2029. Today's quantum computers are error-prone, making them impossible to scale. A fault-tolerant version would enable reliable calculations, clearing the way for wide adoption of quantum computers.
Should you invest $1,000 in International Business Machines right now?
Before you buy stock in International Business Machines, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and International Business Machines wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $651,345!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,080,327!*
Now, it’s worth noting Stock Advisor’s total average return is 1,058% — a market-crushing outperformance compared to 189% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of September 15, 2025
Robert Izquierdo has positions in International Business Machines and IonQ. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool has a disclosure policy.
