Tech giant IBM (IBM) is already preparing for the day when quantum computers can crack today’s encryption. Indeed, its latest mainframe, the IBM z16, launched in 2022 with two newly approved post-quantum cryptographic (PQC) algorithms built into the hardware. These algorithms, chosen by the U.S. National Institute of Standards and Technology (NIST), are designed to protect data against both current hackers and future quantum attacks. “IBM’s mission is twofold: bring useful quantum computing to the world and make the world quantum-safe,” says Jay Gambetta, IBM Fellow and head of quantum research.
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Why does this matter? Although powerful quantum machines don’t exist yet, criminals can steal encrypted files now and save them until quantum technology can unlock them, a process known as “harvest now, decrypt later.” Many businesses still rely on encryption methods from the 1970s that a quantum computer could eventually break, which would put sensitive banking, healthcare, and defense data at long-term risk. Enterprises are therefore racing to adopt PQC so that their information stays protected for decades.
To set new security standards, NIST ran a worldwide contest in 2016 to find quantum-resistant algorithms. After six years of testing 82 entries, the agency selected four finalists in 2022, which included three that were created with help from IBM Research. NIST released the first three standards in August 2024 and will publish the fourth soon. However, switching to PQC isn’t simple, as companies must locate old, vulnerable encryption and replace it with these new methods. Nevertheless, IBM’s early move to embed PQC in its z16 shows how organizations can start protecting critical data today while getting ready for tomorrow’s quantum era.
What Is the Target Price for IBM?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on eight 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 $272.36 per share implies 6.6% downside risk.
