IonQ and D-Wave Quantum have exciting technologies.
Alphabet and Microsoft need to develop their own quantum computing capabilities in-house to improve profitability.
10 stocks we like better than IonQ ›
Quantum computing is slated to become the next big tech investment trend following artificial intelligence (AI). We’re still in the early innings of this exciting technology, but most companies agree that 2030 will be a turning point in this space. However, waiting until 2030 to start investing in this field after the winners are established is a mistake. Many of these companies will likely have dramatically increased in value by then, causing investors to lose out on massive returns.
By investing today, it’s possible to pick some of the winners in this space before they’ve become too large to provide substantial returns. I’ve identified four options that appear to be excellent investments in quantum computing, ranging from startups to established big tech players. By staying balanced in this opportunity, investors can capitalize on the trend while ensuring positive returns.
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The stocks that most investors consider in reference to the quantum computing arms race are pure-play investments, such as IonQ (NYSE: IONQ) and D-Wave Quantum (NYSE: QBTS). These companies are startups that have no other goal besides developing commercially viable quantum computing technologies, and their upside could be immense if they achieve their goals.
IonQ and D-Wave only have market caps of $16.5 billion and $6.1 billion, respectively. This makes them relatively small companies in general, although they could grow to be monsters if their technology becomes widespread.
The primary reason I prefer these two over many of the other quantum computing pure plays is their approach to quantum computing. The most popular quantum computing technique is superconducting, which involves cooling a particle to near absolute zero to utilize its quantum mechanics to perform calculations. This is an incredibly cost-intensive…
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