Quantum computing uses properties of quantum physics to manipulate information. Quantum computers can encode information in multiple states and can analyze critical computational problems. The power of quantum computing supersedes advanced supercomputing capabilities and enables users to address far more complex issues. Therefore, this technology has immense utility in finance, supply chain, cloud security and several other fields. This revolutionary technology makes quantum computing stocks one of the hottest investments in the future.
However, not all of these companies are created equal.
The companies making inroads in the sector are mainly secondary plays, which have substantial resources to invest in research and development. Some of the world’s largest technology giants are investing huge sums in the quantum computing sphere to cement their dominance in the sector. Research shows that cost savings and revenue opportunities from the sector will exceed $450 billion annually. The market is expected to grow at a CAGR of 24.9% from $93 million by 2019 to $283 million by 2024.
With all of that in mind, let’s look at three quantum computing stocks that are needle-movers in the space:
Alphabet (GOOG, GOOGL)
The technology giant’s subsidiary Google has been flirting with the idea of quantum computing since 2006. It was not until 2012 when it first formed a dedicated quantum lab. Since then, it has become a significant player in the industry, claiming “quantum supremacy” last year with its Sycamore quantum processor. Hence, Alphabet is arguably the best play in the quantum computing sphere.
The Sycamore quantum processor can perform a specific task in just 200 seconds, which would take a supercomputer 10,000 years. The company hopes to effectively link its quantum computing efforts with its artificial intelligence wing. The combination is likely to lead to more breakthroughs in the tech industry and it encompasses what the company hopes to become. Google CEO Sundar Pichai said last year in the event that “Google wouldn’t be here today if it weren’t for the evolution we have seen in computing over the years … So at heart, we view ourselves as a deep computer science company.”
International Business Machines (IBM)
IBM has recently has made its quantum computing aspirations concrete through its announcement of a comprehensive road map. It plans to develop a quantum computer which contains 1000 qubits by 2023. That is a massive leap from its current largest quantum computer, which contains 65 qubits.
IBM is aiming to develop quantum computing systems of 127 and 433 qubits within the next two years. Through quantum experience, it has built a total of 28 quantum computers over the past four years. Hence IBM is a significant player in the sector, which may become the industry trend-setter.
IBM has also been doing well in building partnerships for the advancement of its quantum computing efforts. Last year, it announced that it was co-operating with the University of Tokyo to form the Japan-IBM Quantum Partnership. Additionally, it is also working with companies such as Wells Fargo (NYSE:WFC) in revolutionizing the financial world by streamlining banking activities.
The quantum computing capabilities of software giant Microsoft are perhaps the most unique in the industry. The company is effectively looking to marry its cloud computing services with its quantum computing abilities. It is developing an open cloud ecosystem, Azure Quantum, in partnership with 1QBit, Honeywell (NYSE:HON) and IonQ. Microsoft aims to build a universal quantum computer with robust nanowire-based hardware architecture. Apart from the successful array of other unique services, quantum computing might become a major catalyst for MSFT stock.
Many experts believe that the Azure Quantum platform is the culmination of the company’s decade-long research and efforts in developing its cloud computing interface and employing a developer’s first approach. Users will tap into the massive power of quantum computing without the need for physical access through the cloud.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University. He does not directly own the securities mentioned above.