IBM: The Profitable Quantum Computing Stock With 1,000% Upside

Wall Street’s bet on quantum computing has created astronomical returns for pure-play startups, with IONQ surging 668%, D-Wave Quantum up 2,622%, and Rigetti Computing delivering a staggering 3,848% gain over the past year. This speculative frenzy reflects investor enthusiasm for what many consider the ‘next big thing’ in technology. However, beneath these impressive numbers lies a troubling reality: these companies are burning cash at record speeds, funding their progress through continuous market offerings while remaining years or even decades away from profitability.

In stark contrast, IBM represents the antithesis of this high-risk approach. While generating $2.2 billion in net income during Q2 2025 alone—more than the top three public quantum computing startups have raised through dilution combined in 2025—IBM offers investors both quantum exposure and financial stability. The company’s 2.38% dividend yield and 30 consecutive years of dividend increases provide a safety net that pure-play quantum stocks cannot match, making it the sensible choice for investors seeking quantum exposure without the startup volatility.

IBM’s quantum computing credentials extend back to the 1980s, when the company first conceptualized the technology. This decades-long commitment has yielded tangible results, including the 2019 launch of IBM Quantum System One—the world’s first commercial quantum computer. While startups focus on niche hardware with limited scalability and narrow use cases, IBM has built a comprehensive ecosystem centered on hybrid quantum-classical systems designed for enterprise clients.

The company’s technological roadmap demonstrates both ambition and credibility. Following breakthroughs in June 2025, IBM aims to build a fault-tolerant quantum computer by 2029—a milestone that could put it years ahead of competitors. This timeline isn’t speculative; IBM has consistently hit its quantum computing milestones, building trust with investors who’ve watched other quantum companies repeatedly push back their targets. The company’s existing cloud infrastructure, already serving Fortune 500 clients, provides an immediate distribution channel that startups would need years to replicate.

The comparison to Nvidia isn’t merely speculative hype—it’s grounded in parallel business models and market opportunities. When Nvidia bottomed out in 2022 with a market cap below $280 billion, few predicted its subsequent 1,530% surge. IBM currently sits at a $262 billion market capitalization, leaving similar room for explosive growth if quantum computing achieves commercial viability. More importantly, IBM possesses the financial resources to weather the inevitable downturns that bankrupt less-established competitors.

IBM’s diversified business model provides crucial insulation against quantum computing’s uncertainties. While pure-play quantum stocks like IONQ, QBTS, and RGTI would face existential threats if quantum breakthroughs stall, IBM’s software revenue grew 10% year-over-year in Q2 2025, with consulting revenue increasing 3%. This diversified revenue stream, combined with sticky enterprise clients, ensures IBM’s survival regardless of how quickly quantum computing matures. The company doesn’t need quantum success to thrive—it merely needs quantum success to dominate.

The potential upside is staggering. A 1,000% gain from current levels would give IBM a $2.9 trillion market cap, making it only the fifth-largest company globally. If IBM can commercialize quantum technology and sell it to AI companies and hyperscalers—similar to Nvidia’s current business model—this projection becomes increasingly plausible. For investors, this represents the rare opportunity to participate in quantum computing’s potential revolution while maintaining exposure to a profitable, dividend-paying blue chip.