Tech giant IBM (IBM) has long led the race in quantum computing, especially after revealing its 1,121-qubit Condor chip in late 2023, which made it the first company to pass the 1,000-qubit threshold. But that lead may be challenged sooner than expected, as China’s QuantumCTek just introduced the ez-Q Engine 2.0, a powerful superconducting quantum control system that supports over 1,000 qubits. This places China’s platform potentially in third place globally, behind IBM and Atom Computing, and suggests that the gap between U.S. and Chinese quantum capabilities is narrowing fast.
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What is interesting is that the new Chinese system is built entirely with domestic components. In addition, it was delivered to top research institutions and is already operational, which suggests that this isn’t just a lab experiment, but a real, deployable product. What is also notable is how the system reduces costs and physical size while maintaining performance levels close to those of IBM’s and Atom’s systems. Its precision in controlling qubits, reducing noise, and keeping perfect timing—all essential for quantum computing to scale—has historically been a strength of U.S. firms.
However, QuantumCTek’s system reportedly achieves this too, meaning that IBM’s once-clear lead may now be at risk. Furthermore, according to the company, a next-generation version designed to manage quantum computers with 10,000 qubits and built-in error correction is already in development. That’s critical because reaching that scale is key to achieving “quantum advantage,” which is where quantum computers can solve real-world problems faster than classical ones. If China can scale its technology faster and more affordably, IBM could face pressure.
What Is the Target Price for IBM?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on seven Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $267.54 per share implies 5.5% downside risk.
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