IBM Reveals Quantum Chip, Eyes 2029 Starling Supercomputer Launch

International Business Machines Corporation (NYSE:IBM) is one of the best Dow stocks to invest in. On June 10, the company revealed that it’s working on a large-scale, fault-tolerant quantum computer named Quantum Starling as part of its broader quantum roadmap.

A key component of this effort is the upcoming IBM Quantum Nighthawk processor, which is expected to launch later this year, according to a company blog post.

Like several other tech giants and well-funded startups, International Business Machines Corporation (NYSE:IBM) is racing to advance quantum computing. The core challenge they all face lies in qubit reliability—while qubits can perform rapid calculations, they tend to generate significant errors. Researchers often dedicate some qubits to correcting these errors, but that leaves fewer available for practical computation.

International Business Machines Corporation (NYSE:IBM) shifted its strategy in 2019, and now claims it has developed a new algorithm that could dramatically reduce the number of qubits required for error correction.

Jay Gambetta, International Business Machines Corporation (NYSE:IBM) vice president of quantum initiatives, explained that, unlike the company’s earlier approach, where theory dictated chip design, the current strategy focuses on building chips that are feasible first and then designing the error-correction method around them. This more pragmatic path has given IBM the confidence to roll out a series of increasingly advanced systems through 2027, paving the way for much larger quantum machines.

IBM has surged by over 25.6% since the start of 2025.

While we acknowledge the potential of IBM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Biotech Stocks with Huge Upside Potential and 10 Unstoppable Dividend Stocks to Buy Now