IBM CEO Sees Quantum Earnings Impact by 2028-29

Krishna made the comments Thursday on CNBC's Mad Money, alongside the release of new research with startup AlgorithmQ describing a quantum computing advantage. The companies said a quantum computer can solve certain computational problems more efficiently than today's most advanced classical computers while also verifying the results.

Krishna said IBM's quantum computers have uncovered behaviors in materials that researchers could not observe using conventional computing. He said those insights could eventually lead to better batteries, more advanced materials, improved fusion energy, and smarter medicines.

The comments came as IBM works to reassure investors after its July 14 earnings update triggered the company's worst single-day stock decline on record. Shares fell 25% and have since recovered only about 2%. In the earnings report, IBM said some customers had delayed capital spending projects, raising concerns about near-term demand and AI's potential long-term risks to its software business.

Krishna said those projects were postponed, not canceled. "Here's the good news: about 40% of them have already closed in three to four weeks. ... That's a good signal that it is a deferral, not a destruction," he said.

Earlier this year, the Trump administration announced plans to take $2 billion in equity stakes across nine quantum computing companies, including a new IBM venture. The U.S. Department of Commerce said IBM would receive $1 billion to establish a new company dedicated to manufacturing chips for quantum computers.