AMD's stock pops 6% on report IBM can use its chips for quantum computing

Shares of Advanced Micro Devices (AMD) experienced a significant uptick, soaring over 6% following reports that IBM plans to leverage AMD's chips for specific quantum computing algorithms. This news also positively affected IBM's stock, which saw a similar increase of about 6%. According to a report from Reuters, a forthcoming paper is expected to reveal that IBM can execute a quantum error-correction algorithm on AMD's field-programmable gate array (FPGA) chips. As of now, neither AMD nor IBM representatives have provided comments regarding this development. Back in August, the two companies announced a partnership aimed at enhancing quantum computing capabilities and integrating their technologies. IBM has ambitious plans to unveil a quantum computer by 2029, utilizing the principles of quantum mechanics to tackle challenges that conventional computers cannot handle. The race for advancements in quantum computing is heating up, with industry giants like Google, Microsoft, and Amazon also in pursuit of this transformative technology. Last year, Microsoft introduced its first quantum computing chip, while Google launched its innovative Willow chip. A leading quantum executive from Google mentioned in March that a substantial breakthrough in the field could be just five years away. These recent developments have reignited interest in the quantum computing sector, leading to stock increases for companies such as D-Wave Quantum, Rigetti Computing, and IonQ, all of which saw boosts on Friday. Meanwhile, the Trump administration has denied reports suggesting that it is in negotiations to acquire stakes in quantum technology firms.