Table of Contents Hide
- What is Quantum Computing
- Where Would The Impact Of Quantum Computing Be Felt Most?
- Which Nations Are Investing In Quantum Computing
- How To Invest In Quantum Computing
- Quantum Computing Stocks To Invest in This Decade
Quantum Computing might be the next big thing in the next few years when it comes to investing. As a matter of fact, IBM predicts 2023 to be the year for quantum to break through as a formidable source of investment. There are further projections that suggest that quantum might reach market maturity come 2025.
Just like Crypto, it might prove to be a good investment in few years, if the “prophecies” materialize. When this happens, the issue we might have in our hands will be not knowing how to invest in quantum computing. Or not investing when we should have.
This is why this post is a “brainer”. The article will be discussing how to invest in Quantum Computing stocks. It will also be looking at the best Quantum Computing stocks you can buy.
According to research carried out by MarketWatch, The Global Quantum Computing Market was valued at $89 million in 2016 and is projected to reach $949 million by 2025, growing at a CAGR of 30% from 2017 to 2025. In a separate study by McKinsey, there will be an estimated 2,000 to 5,000 quantum computers worldwide by 2030. Automotive will be one of the primary sectors for quantum computing with a high impact noticeable by around 2025.
To understand more, read through this article. Meanwhile, below is a table of content that summarizes our article.
What is Quantum Computing
According to CB Insights, quantum computing is the process of information that is represented by special quantum states.
With the use of superposition and entanglement, quantum machines handle information in a fundamentally different way to classical computers like smartphones, laptops, or even today’s most powerful supercomputers.
These computers have the power to solve critical computational problems across a wide array of services.
Today, Quantum computing isn’t a theoretical subject anymore. They are no used by researchers from all over the world to test out algorithms for applications in a variety of fields.
Before now, this wasn’t the case. As matter of fact, Quantum wasn’t even a “real” thing a decade ago, but mere theory – IBM.
Today, the industry has provided solutions where there are no identifiable trends and solved problems outside existing supercomputing capabilities.
Where Would The Impact Of Quantum Computing Be Felt Most?
Given nature and the promises it has in store for us all, its usefulness will be spread across very important industries.
The ability of Quantum machines to process information and data at a very exponential rate while consuming very little energy makes the machines formidable.
Bearing these things in mind, Quantum Computing will prove to be very useful in the following areas and or industries;
Logistics, military affairs, pharmaceuticals (drug design and discovery), aerospace (designing), utilities (nuclear fusion), financial modeling, chemicals (polymer design), Artificial Intelligence (AI), cybersecurity, fault detection, Big Data, and capital goods, especially digital manufacturing.
The productivity gains by end-users of quantum computing, in the form of both cost savings and revenue opportunities, are expected to surpass $450 billion annually.
“It will be a slow build for the next few years: we anticipate value for end-users in these sectors to reach a relatively modest $2 billion to $5 billion by 2024. But the value will then increase rapidly as the technology and it’s commercial viability mature,” reports BCG.
Which Nations Are Investing In Quantum Computing
It’s on record that China is leading the way in Quantum Computing. To further strengthen their stronghold in this industry they launched a quantum satellite in 2016. A paper by The Center for a New American Security (CNAS) highlights how “China is positioning itself as a powerhouse in quantum science.
Since then, some other nations have followed suit as they have understood the importance of quantum science. The nations include U.S., Germany, Russia, India, and European Union. They have all intensified efforts towards quantum computing.
The interest in quantum was so big the former president Donald Trump established the National Quantum Initiative Advisory Committee in 2019 in accordance with the National Quantum Initiative Act, signed into law in late 2018, which authorizes $1.2 billion to be spent on quantum science over the next five years.
The Indian government in support of the advancement of this made provisions to the tune of $1.2 Billion to support Technologies.
The Indian government in its 2020 budget has announced a National Mission on Quantum Technologies & Applications with a total budget outlay of INR 8000 crore ($1.12 billion) for a period of five years while Europe has a €1 billion initiative providing funding for the entire quantum value chain over the next ten years.
In October 2019, the first prototype of a quantum computer was launched in Russia while in Germany, the Fraunhofer-Gesellschaft, Europe’s leading organization for applied research, partnered with IBM for advanced research in the field of quantum computing.
How To Invest In Quantum Computing
While the industry is still young and not developed, investors will still look for a way of making money from it. The hardware industry related to quantum computing will grow at an impressive rate. But the real money will be in the business opportunities it can unlock.
There are countless ways quantum computing can be used. And there will only be more in the future. Some potential uses include improved batteries and carbon-captures technologies, early-stage R&D to produce newer, more effective drugs, enhanced risk analysis for banks, pricing complex derivatives, improving cybersecurity, and developing smarter vehicle routing, among other uses.
The industry already has big names invested. Honeywell believes quantum computing is a huge opportunity. They already own a machine and rent it out for other companies to use, which is currently booked for months.
Technology giant Intel is among the companies serious about developing quantum computers of their own. Startups Rigetti and IonQ are also serious about creating their own computers.
Microsoft and Amazon are already telling their business customers of Azure and AWS they will offer them the use of quantum computers. Microsoft and Amazon do not currently have any plans to develop their own quantum computers but will partner with companies that have computers available.
Zapata computing, a software company based out of Boston helps customers create algorithms needed for quantum computers.
Google has already claimed to have achieved quantum supremacy. This would mean a quantum computer outpaced a classical super-computer. IBM has disputed the results but it is only a matter of time before the industry is front-page news, like Tesla, and anything related to it is in an over-hyped bubble.
Quantum Computing Stocks To Invest in This Decade
With Quantum Computing making waves and projections suggesting that it will be the next big thing in the coming decade, below are Quantum Computing Stocks that have show promise.
IBM Quantum Computing Stock: Why It’s the Top
It’s not hidden knowledge that IBM is the top-dog in Quantum Computing stock. And the reason for this is because they are among the pioneers of Quantum Computing with 28 quantum computers already deployed.
The 28 deployed computers remain the largest fleet of commercial devices, and IBM has a road map to scale systems to 1,000 qubits and beyond.
Currently, IBM Quantum Network is working with more than 100 partners. These partners are in many different industries and are developing real-world commercial applications. IBM also offers free access to quantum computing.
IBM is also scaling these technologies and making them more accessible. This is vital for further adoption and innovation. Their strategy is working, and as long as it continues to work, IBM will continue to be one of the top quantum computing stocks over the coming decades.
Alphabet Has Declared Quantum Supremacy
While IBM is making waves, we can’t totally rule out Alphabet, nor can we ignore the huge impact they’ve made in Quantum Computing.
Their stock remains one of the top Quantum Computing stocks to acquire. Back in 2019, the company claimed quantum supremacy for the first time when its advanced computer surpassed the performance of conventional devices.
Alphabet’s Sycamore quantum processor performed a specific task in 200 seconds that would take the world’s best supercomputer 10,000 years. That’s a huge milestone, and the company is continuing to advance with quantum physics.
Google AI Quantum is making big strides as well. It’s developing new quantum processors and algorithms to help solve a wide range of problems. It’s also open-sourcing some of its frameworks to spur innovation.
The Future Is Still Powered by Intel
Another company that has shown promise in Quantum Computing stocks is Intel. They are a semiconductor giant that’s developing many cutting-edge technologies. And it’s been making quantum processors in Oregon. Furthermore, the company hopes to reach production-level quantum computing within 10 years.
Intel is on its third generation of quantum processors with 49 qubits. The company has a unique approach, advancing a technology known as “spin qubits” in silicon. Intel believes it has a scaling advantage over superconducting qubits.
This easily makes Intel one of the top quantum computing stocks. Buying into this company gives investors exposure to many cutting-edge technologies.
Microsoft Is Another Top Quantum Computing Company
Similar to IBM, Microsoft takes a comprehensive approach to quantum computing. It’s working on all the technologies required to scale commercial applications.
Microsoft is advancing all layers of its computing stack. This includes the controls, software, and development tools. Microsoft also created the Azure Quantum open cloud ecosystem. This helps speed up innovation.
In addition, the tech giant is making great advancements with Topological qubits. These provide performance gains over conventional qubits. They increase stability and reduce the overall amount of qubits needed. It’s a promising technology that should reward shareholders down the road.
Amazon Delivers More Than Just Packages
Amazon Quantum Solutions Lab is helping businesses identify opportunities. Amazon’s experts are working with clients to better understand quantum computing. This helps them build new algorithms and solutions.
Amazon now offers quantum computing on Amazon Web Services through Amazon Bracket. This service provides access to D-Wave hardware. D-Wave is a leading quantum computing company based in Canada. It’s not publicly traded, though.
Overall, Amazon is continuing to disrupt many industries. And advancing quantum computing should help drive its innovation even further.
Quantum Computing Stock Is a Pure-Play Opportunity
This quantum stock is the smallest on the list. It gives direct exposure to quantum computing. This makes it a higher-risk opportunity, however. Its risk-to-reward setup looks good for long-term investors, though.
Quantum Computing offers cloud-based, ready-to-run software. It’s focused on creating services that don’t require quantum expertise or training to use. This approach is opening the doors for more businesses to leverage the new technologies.
This company is also focusing on real-world problems such as logistics optimization, cybersecurity and drug discovery. To accomplish this, it’s partnering with hardware companies such as D-Wave.
Quantum Computing is changing the narrative. Get on it now to make the best out of it when it eventually gets to its market maturity.