The move: IBM stock jumped as much as 5% on Thursday, extending a week of solid gains.
Shares of the tech company have risen steadily in 2025, and are up 22% year-to-date.
Why: On Thursday, HSBC revealed the results of its quantum computing-enabled algorithmic bond trading trial, powered by IBM’s technology.
The bank reported a 34% improvement rate in the system’s ability to predict the probability of winning customer inquiries in Europe’s bond market. According to HSBC, the teams behind the trial validated multiple types of trading data on multiple IBM quantum systems to achieve these results.
According to HSBC, the trial demonstrates the potential value that quantum computing systems can provide for the financial sector by helping decipher real-world problems in algorithmic bond trading.
“Working with a team from IBM, HSBC leveraged an approach that utilised quantum and classical computing resources to deliver up to a 34 percent improvement in predicting how likely a trade would be filled at a quoted price,” HSBC noted in its statement.
The trial’s results provide insight into quantum computers’ ability to optimize Request for Quotes sent by traders to liquidity providers. Statistical models and other algorithmic strategies estimate the likelihood of a trade being filled at the quoted price.
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What it means: While 34% may not seem like a high success rate, the results reveal a major step forward for quantum computing as a real-world application for the financial sector.
“[This] means we now have a tangible example of how today’s quantum computers could solve a real-world business problem at scale and offer a competitive edge,” HSBC Group quantum head Philip Intallura said.
Jay Gambetta, who leads IBM’s quantum unit, noted that the scaling of quantum computing is likely to transform entire industries. In May, he said that CEOs who weren’t preparing for the quantum revolution were at serious risk.
Other experts have said that quantum computing is poised to revolutionize industry. Now, algorithmic trading may be added to the list, supporting boosting IBM stock as a strategic play in the fast-moving quantum space.