This Is When IBM's CEO Says Quantum Computing Could Start to Have a "Measurable Impact" on Its Bottom Line

Quantum computing has been an area of tech that growth investors have been targeting in recent years. In 2024, shares of Rigetti Computing soared more than 1,400%. While the enthusiasm has cooled of late given the long-term question marks and uncertainty around the business, quantum computing can have a significant and profound impact on the tech sector as a whole.

But rather than investing in a small, risky stock such as Rigetti, a safer option to consider may be a big behemoth such as International Business Machines (NYSE: IBM). It's investing heavily in quantum computing, and it anticipates it'll start having a noticeable impact on its business in the not-too-distant future.

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Quantum computing is a huge opportunity for IBM

Quantum computers can solve complex problems significantly faster than current computers can. And with artificial intelligence creating a surge in demand for compute power, quantum computers may come online at a pivotal time for the tech sector.

IBM is a leading tech company that's been investing heavily in quantum computing, and its CEO Arvind Krishna believes that it won't be too much longer before investors start to see a payoff. "I think that in 2028 or 2029, you'll see it have a measurable impact on our top line and bottom line," Krishna forecasted in a recent interview on CNBC. He believes the growth opportunities in the space could be tremendous. "By the end of the 2030s, we are now pretty convinced this is a trillion dollars of value."

For IBM investors, it's welcome news after the stock's struggles this year. It has fallen 19% thus far in 2026, with the market being unimpressed with its growth and recent results. While quantum computing may not turn things around for IBM this year, there is hope that down the road it may be a game changer for the business.

Is IBM's stock a bargain buy right now?

When the market panics and overreacts, it can create some great buying opportunities for long-term investors. That may have happened when IBM's stock crashed a month ago after releasing preliminary numbers that were well short of expectations. While it has been rising since then, it's still down significantly this year.

Trading at a price-to-earnings multiple of 21, it's a reasonably priced stock given that the S&P 500 averages an earnings multiple of 26. IBM is still a top tech stock to own, and with tremendous long-term opportunities related to quantum computing, now, while its valuation remains low, could be an ideal time to buy it.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool has a disclosure policy.