Forget Rigetti Computing: Serious Investors Are Placing Their Chips on This Enterprise‑Ready Quantum Platform

By James Hires – Feb 2, 2026 at 1:46PM ESTKey PointsIBM is America's oldest tech company, has been researching quantum computing since the 1970s, and has yet to miss a milestone. The company's Nighthawk quantum processor is a technological marvel that significantly improves upon the Heron chip. Institutional investors have been buying up shares, and IBM's latest results were impressive, justifying those buys. NYSE: IBMInternational Business MachinesMarket Cap$287BToday's Changeangle-down(3.02%) $9.25Current Price$315.95Price as of February 2, 2026 at 2:15 PM ETThere are lots of quantum computing start-ups, but IBM, America's first tech company, has led the pack since the 1970s, and is set to continue that dominance through 2026 and beyond.International Business Machines (IBM +3.02%), better known by its initials IBM, is proof that an old dog can always learn new tricks. IBM was founded back in 1911, and, despite being about a century older than most other tech companies, it's remained a highly adaptable company that often leads the pack in terms of innovation. And the company has emerged as an early leader in quantum computing. There are other quantum computing companies out there like Rigetti Computing or D-Wave Quantum, but none of them have the resources and reputation that IBM does. Wall Street seems to be betting on the elder statesman too, because IBM's bleeding-edge Nighthawk quantum processor is proof that the first tech giant can teach these young whippersnappers a thing or two. Image source: Getty Images. Computers that can break physics First, a brief explainer on quantum computers, because the technology does sound like something out of science fiction. A quantum computer uses quantum bits (qubits) to run complex equations, calculations, and models. A normal or "classical" computer like the one you likely have at home uses bits to store and process data. Bits are either on or off, expressed as a 1 or a 0 in binary code. Qubits exist as both a 1 and a 0 simultaneously until observed, at which point they become a 1 or a 0. This breaks the Pauli Exclusion Principle of the laws of physics that state two objects cannot exist in the same place at the same time. But qubits exist in a state of quantum superposition. The result of this quantum weirdness is that quantum computers are incredible at breaking encryption and running complex equations that it would take a classical computer practically forever to complete. But they are terrible at normal computer things, like running Microsoft Office. IBM currently has 2,299 qubits available for use by its customers; it holds the largest quantum computer in the world right now with 1,121 qubits on its own; and its new Nighthawk quantum processor is set to solidify its quantum dominance moving forward.

Nighthawks The Nighthawk chip is a scalable 120-qubit quantum processor that allows 30% more complexity over its predecessor, the Heron chip, while maintaining roughly the same fidelity. In quantum computing terms, fidelity measures on a scale of 0 to 1 (0% to 100%) how closely a quantum machine is to its ideal performance during operation. IBM's new processor also has a 20% increase in inter-qubit connections, which are the mechanisms by which qubits interact with one another to work their magic, over the Heron chip, which in turn allows it to run larger and more complex workloads. Once the processor becomes available to the public, IBM expects its performance will only increase as Nighthawk is put through its paces and scaled up to meet demand. The Nighthawk processor will likely be critical to IBM's goal to achieve a 100,000-qubit quantum computer by 2033. And, based on the sheer amount of investor dollars flowing into IBM, it seems Wall Street has a lot of confidence in IBM's ability to deliver. It's no wonder why, either. IBM has been working on quantum computing technology since the 1970s, and it has never yet missed a milestone on its quantum roadmap. In Q3 2025, Fidelis Capital Partners boosted its stake in IBM by 27% to $3.16 million. Vanguard also increased its stake 2.1% to 95 million shares, or $28 billion.

And Fortis Capital Advisors increased its stake in IBM by about 91% in Q3. The company's Q4 and full-year 2025 results, reported on Jan. 28, seem to have justified that bullishness. ExpandNYSE: IBMInternational Business MachinesToday's Change(3.02%) $9.25Current Price$315.95Key Data PointsMarket Cap$287BDay's Range$306.38 - $316.6452wk Range$214.50 - $324.90Volume171KAvg Vol4.3MGross Margin58.06%Dividend Yield2.19% Full steam ahead Q4 2025 saw IBM's revenue surge 12% year over year to $19.7 billion and net income increase 91% year over year to $5.6 billion. Diluted earnings per share (EPS) shot up 88% year over year. For all of 2025, revenue was up 8%, net income grew 76%, and diluted EPS saw 74% growth. The company is running a gross margin of 58.2%, up 1.5 points year over year, and an operating margin of 21.1% (down slightly from 22.3% in Q4 2024), as of its latest results. Its free cash flow margin dipped slightly from 35.1% to 32.9% but remains positive. Yet, despite the few decreased numbers, Wall Street was clearly happy with IBM's results, and the stock surged 5% in the immediate wake of its earnings release. IBM is making all the right moves on quantum computing, institutional investors are loading up on shares, and I see it maintaining its quantum dominance through 2026 and beyond. Consider it if you're looking for a way to profit from tech's next big thing.Read NextFeb 1, 2026 •By Geoffrey SeilerIBM Shares Pop on Strong AI Growth.

Is It Too Late to Buy the Stock?Jan 31, 2026 •By Timothy GreenThis 'Outdated' IBM Technology Just Did Something It Hasn't Done in 20 YearsJan 29, 2026 •By Keith SpeightsForget Rigetti Computing: This Quantum Veteran With Real Cash Flow Is the Smarter Long‑Term BetJan 28, 2026 •By Scott LevineWhy IBM Stock Is Soaring in After-Hours TradingJan 17, 2026 •By Timothy Green3 Reasons to Buy IBM Stock Right NowJan 10, 2026 •By Geoffrey SeilerWant to Invest in Quantum Computing? These 3 Stocks Are Great Buys Right Now.About the AuthorJames Hires is a contributing analyst at The Motley Fool covering the technology, energy, and mining industries. He is also a contributing analyst at SeekingAlpha. Prior to The Motley Fool, James spend six years ghostwriting at The Oxford Club, a leading financial newsletter in his hometown of Baltimore, Maryland. He holds a bachelors in history from Towson University and enjoys covering companies with historical or cultural significance.TMFJamesHiresX@moneyguyjimStocks MentionedInternational Business MachinesNYSE: IBM$315.95 (+0.03%) $+9.25MicrosoftNASDAQ: MSFT$424.36 (0.01%) $5.93Rigetti ComputingNASDAQ: RGTI$17.55 (0.03%) $0.63D-Wave QuantumNYSE: QBTS$20.85 (0.02%) $0.37*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.