All articles tagged with #ibm
Ford is rehiring hundreds of experienced engineers to fix quality issues AI couldn’t address, while Commonwealth Bank of Australia and IBM are also refocusing on human labor after layoffs. Analysts warn that replacing workers with AI can backfire, as cuts are often regretted and human oversight remains crucial for realizing AI gains, leading many companies to rebalance toward human–AI collaboration and stronger talent pipelines.
Elon Musk criticized IBM’s 0.7‑nm branding as misleading and argued process names should reflect the number of atoms across the smallest feature, not a nominal size; IBM counters that 7 angstroms denotes a generation and describes nanosheet/nanostacking and wafer bonding tech, with the story also noting past renamings like Intel’s and the broader industry context around TSMC, AMD, NVIDIA, and Apple.
IBM unveiled the world’s first sub-1-nanometer semiconductor chip, using a nanostack architecture to vertically stack transistors and fit nearly 100 billion transistors on a fingernail-sized wafer, with up to 70% energy efficiency gains over its 2nm predecessor. Production isn’t imminent, as IBM aims to enter markets within five years and continues work on thermal management and integration challenges.
IBM announces the world’s first sub-1 nanometer chip at 0.7 nm built with a 3D nanostack transistor design, packing about 100 billion transistors in a fingernail-sized die and delivering up to 50% more performance or 70% greater energy efficiency than its 2 nm predecessor. The nanostack stacks transistors in 3D layers with material flexibility, shows 40% SRAM scaling, and points to production within five years, backed by partners and the launch of Anderon quantum-foundry; the work leverages High-NA EUV lithography and aims to push Angstrom-scale computing forward.
IBM has introduced the nanostack transistor architecture, claimed as the world’s first sub-1-nm node, which stacks transistors to fit about 100 billion onto a chip the size of a fingernail and targets a 0.7-nm/7Å node. The approach could yield roughly 50% higher performance or 70% better energy efficiency versus the 2-nm generation, with SRAM scaling improved about 40% through a staggered-channel design. The technology is developmental, not a commercial product, and IBM plans partnerships (e.g., Rapidus, Samsung) for mass production, with chips potentially entering production in 5–10 years. The “sub-1nm” label reflects performance goals rather than physical feature sizes, and IBM’s nanosheet lineage remains foundational for future transistor scaling.
AI-linked layoffs have totaled roughly 87,000 in the first five months of the year, already eclipsing all of 2024’s layoffs, with IBM and Qualcomm among the biggest cutters. The data show cuts are concentrated in high-paid coding roles even as overall payrolls remain solid, and May marked the third straight monthly rise in job cuts with tech accounting for a large share. Starbucks is tying part of tech bonuses to AI usage and expects about $400 million in restructuring, signaling AI-driven workforce optimization is spreading beyond pure tech. While the May jobs report showed payroll gains and a steady unemployment rate, analysts caution against reading a recession from a single Challenger Score and recommend watching June data for confirmation.
IBM trades around $329 after a 31% weekly surge; a pullback toward $260 would push the forward P/E into the low-20s and restore a margin of safety, backed by accelerating GenAI revenue (up to $12.5B book), growing software ARR (~$24.6B), and a guided ~$1B higher free cash flow for 2026, though the bear case remains its still-premium valuation (forward P/E ~26, PEG ~3) and potential mainframe/infrastructure headwinds.
Barclays initiated coverage on IBM with an Overweight rating and a $350 price target, praising IBM's shift toward software and its hybrid-cloud platform as key growth drivers, and expects mid-single-digit organic revenue growth with improving margins as AI (WatsonX), data products, and quantum computing opportunities support the business.
IBM shares jumped about 10% after Barclays initiated coverage with an Overweight rating and a $350 price target, praising IBM’s software unit (roughly half of revenue) and steady infrastructure software demand as less AI-disrupted than peers. Barclays also highlighted IBM’s ongoing quantum computing push, including a government-backed $1 billion quantum foundry project in which IBM would contribute cash and IP, and IBM’s plan to invest more than $10 billion in quantum computing and $5 billion in open-source software security over five years.
Stock futures fell Monday amid renewed geopolitical tensions, but the session highlighted notable movers including TMHC, NVDA, IBM, CRM, BRK.A/BRK.B, NIO, XPEV, WSE and RDW as investors weigh energy-driven inflation and market volatility.
Premarket software shares rise after Nvidia unveils the N1X PC chip (made with Microsoft), fueling a broad rally led by ServiceNow with about a 14% gain, followed by IBM, Hewlett Packard, and ARM as investors bet on a reinvention of the PC era.
Former President Trump praised IBM’s CEO as a “legend” while the government floated a $1 billion prize for quantum computing, prompting investors to weigh IBM’s stock upside against potential policy support and the tech sector’s momentum.
The US unveiled $2 billion in quantum-computing investments tied to the CHIPS Act, prompting lawmakers who say the spending isn’t aligned with the Act’s purpose; IBM-backed Anderon will be created as a quantum foundry with $1 billion from IBM and $1 billion from the government, transferring IP and staff to fabricate quantum chips. While the move could accelerate progress by giving startups better access to high-quality fabrication, it also raises questions about legality, government priorities, and the long-term market for such specialized hardware.
Quantum stocks jumped after the U.S. government moved to award $2 billion in CHIPS Act funds to nine quantum companies, with IBM slated to receive the largest share and to co-fund a new quantum foundry called Anderon. The funds spurred rallies across peers such as QBTS (D-Wave), RGTI (Rigetti), INFQ (Infleqtion) and others, illustrating renewed investor enthusiasm amid government backing, even as the sector remains volatile and long-term profitability remains uncertain.
Stock futures edged lower Thursday as tensions in the Middle East weighed on markets; QuantumScape rose about 21% on stronger profitability signals and broader demand, while IBM, ServiceNow, and Altimmune fell on weaker margin guidance and dilution concerns.