Imagine retail traders hearing “quantum,” “AMD,” and “faster” and collectively blacking out…

That’s what happened on Friday as AMD (+7.73%) and IBM (+7.88%) both ripped when a  report said IBM ran a “quantum error correction algorithm” on AMD chips. No one knows what that means, but it sounded expensive, so everyone bought. 

(Source: Giphy) 

For more context,  “quantum error correction” is tech’s way of saying “the computer was hallucinating, and we bribed it to stop.” IBM’s calling it a milestone, but outside of finally making the demo work without smoke… Some still think it’s another “quantum” hype story that won’t be established on a broad scale until 2040. However, according to the paper (dropping next week, for the three people who’ll read it), AMD’s field-programmable chips handled the workload about 10x faster than expected. Translation: IBM found a way to do quantum computing without needing a $40 million GPU cluster or divine intervention.

(Source: CNBC) 

What’s more is that IBM says it’s on track for a “large-scale, fault-tolerant quantum computer” by 2029. Bold strategy Cotton… especially from a company that still sends printer drivers via DVD. But credit where it’s due… because this time, they actually ran something, and it didn’t melt. Naturally, investors were 100% here for it as IBM had its best day since January and AMD’s chart went vertical. Which is something, especially considering quantum computing is one of those topics where everyone nods like they understand it. The reality is it’s just math, electricity, and faith… a.k.a. The holy trinity of tech bubbles. Microsoft has one. Google has one. Amazon probably has one hiding behind AWS credits. And now AMD and IBM are holding hands in the particle accelerator.

Of course, this is pretty much AMD’s whole business model right now: “what if our chips powered every imaginary future?” AI, quantum, metaverse, pick your fantasy. It’s the perfect stock for people who like science fiction and options trading. Meanwhile, IBM’s trying to feel young again. They’ve rebranded their long-term plan as “Project Starling,” a hybrid system merging quantum and classical computing. And yet, even still, for one glorious Friday, the dream was alive for quantum stocks. 

(Source: Giphy) 

Which means… which means… while the future’s still five years away, no one cared… the trade was Friday. And that’s all that mattered. Meaning, keep your eyes on both of these stocks as we inch toward today's opening bell. Until next time, friends… 

At the time of publishing, Stocks.News holds positions in Google, Microsoft, and Amazon as mentioned in the article.