Invest in quantum computing stocks

It’s been more than two decades since quantum computing was first developed, but Wall Street has begun to perk up on the technology’s long-term prospects with several pure stocks going public in 2021. Quantum computing technology harnesses the power of superposition: the phenomenon that occurs on the subatomic scale in which objects do not have a clearly defined state, to speed up the speed of computation. While quantum computing has made great strides in just a few years, the technology is still mostly in the research and development stage.

Quantum computers are continually improving and becoming more affordable to develop, and the advent of Cloud Computing is making quantum technology even more accessible to researchers and software developers. Computing power needs are soaring as the digital economy expands, with global cloud computing spending alone projected to rise to $1 trillion annually in the next decade. Quantum computing could emerge as a key technology in the next decade.

Someone writing a complex mathematical equation on a blackboard.

Image source: Getty Images.

Major Quantum Computing Stocks

Although companies dedicated to quantum computing are few, many technology companies are increasing their activity in the quantum field. There are also several companies that create software for quantum computers, such as security software startups. quantum architecture (NASDAQ:ARQQ) Y quantum computing (NASDAQ:QUBT). AN Quantum Computing ETF is also available to gain more general exposure to this nascent industry.

Here are some of the major companies involved in the actual development of quantum computers:

Business

Market capitalization

Description

IonQ (New York Stock Exchange: IONQ)

$2.9 billion

The first pure-play publicly traded quantum computing stock, which had its initial public offering through a merger of a special purpose acquisition company (SPAC) earlier this year.

Acquisition of Supernova Partners Company II (NYSE: SNII)

$454 million

A SPAC that plans to merge and take quantum computer startup Rigetti Computing public.

Microsoft (NASDAQ: MSFT)

$2.5 trillion

The software giant with a hand in everything related to technology, including laboratories dedicated to the development of quantum computers.

Alphabet (NASDAQ:GOOGLE) (NASDAQ:GOOG)

$2.0 billion

Google’s parent company also has a growing cloud computing segment and a large investment arm.

nvidia (NASDAQ: NVDA)

$639 billion

An emerging leader in semiconductor design and next-generation computer development software.

Honeywell (NASDAQ: HON)

$150 billion

An industrial conglomerate that has developed its own quantum computer and is ready to merge its quantum computing services with a quantum software startup.

IBM (NYSE:IBM)

$112 billion

The legacy tech giant is now refocusing on cloud computing needs, including a quantum computing segment.

Data source: YCharts. Data updated at market close on October 29, 2021.

1.IonQ

IonQ recently went public through a merger with special purpose acquisition company (SPACE) dMY Technology Group III. IonQ is a startup-stage quantum computing company, and is the first publicly traded pure quantum computing company.

IonQ has one quantum computer currently in operation and plans to use the cash proceeds from the SPAC merger to build a network of quantum computers accessible from various cloud services. IonQ’s focus on cloud computing is illustrated by its partnerships with Microsoft, Amazon‘s (NASDAQ:AMZN) Web services (AWS) and Google Cloud. The Japanese telecommunications company and technology investor Softbank Group (OTC: SFTBF) has also invested in IonQ and is partnering with the company to bring the power of quantum computing to the many other technology companies in its portfolio.

IonQ generates little revenue at the moment and is not yet profitable. You will likely continue to spend a lot to continue developing your product and your business for at least a few years. Investing in this start-up is a speculative move. However, it could be the most profitable way to invest in quantum computing if IonQ is successful, as the company believes the quantum computing industry could be worth $65 billion annually by 2030.

2. Acquisition of Supernova Partners Company II (Rigetti Computing)

Rigetti Computing is another startup focused squarely on the development of quantum computers. The company introduced its supercomputing chips specifically designed to power quantum computers in June 2021 and is already working with researchers, government entities, and technology companies like NASA and the US Department of Energy to use and improve its supercomputer processors. quantum degree.

Hot on the heels of the successful IonQ IPO processRigetti also plans to become a publicly traded company through a merger with SPAC Supernova Partners Acquisition Company II. Based on the value of the SPAC at the time the deal was announced in early October 2021, Rigetti will be worth $1.5 billion when the merger closes and will raise $458 million in gross cash proceeds to assist with further development. of the chips. . The company has also announced new strategic alliances with data analysis software company Palantir Technologies (New York Stock Exchange:PLTR) and electronics manufacturer Keysight Technologies (NYSE:KEYS).

3.microsoft

The software titan researches and develops all kinds of technology, and quantum computing technology is no exception. Quantum computers require special cooling, hardware designed at microscopic levels, and special software, all of which Microsoft is developing in its labs. Through its massive Azure cloud platform, Microsoft also offers access to quantum computing services.

Quantum computing technology probably won’t be a major factor in Microsoft’s financial performance anytime soon, but the company is nonetheless helping to develop the next generation of computing technology.

4. Alphabet

Alphabet Google, the third-largest public cloud computing platform, has developed its own quantum computing chips under the Sycamore brand. The tech giant is using quantum computing to advance its artificial intelligence (AI) software systems.

Google’s interest in better, faster, and smarter computing stems from its leadership role in Internet search. The company is responsible for organizing massive amounts of digital data and can benefit significantly from helping organizations of all kinds harness the power of that information. Quantum computing coupled with AI may provide a way for Google to improve the efficiency of large computing systems and is central to the company’s innovation efforts.

5.Nvidia

Nvidia is rapidly emerging as the world leader in advanced technology semiconductor designs, leveraging next-generation technology with its graphics processing units (GPUs) that accelerate computing power. Nvidia is developing quantum computers that use GPUs, retaining its leading role in developing sophisticated circuit designs. The company is also a leader in artificial intelligence and machine learning.

Nvidia is leveraging its software developed for GPUs to support the development of quantum computing. It has released cuQuantum, a software development kit designed to help software developers create quantum computing workflows.

6.Honeywell

Honeywell is best known as a industrial manufacturer which produces everything from aerospace equipment to advanced building materials and medical devices. But Honeywell is also a technology company, and its diverse work includes quantum computing.

Honeywell has its own quantum computer, which it uses internally for research and with many industrial partners to develop new products and services. Honeywell’s quantum computing platform is also available through public cloud services such as Microsoft Azure. However, the company recently announced plans to spin off Honeywell Quantum Services as a separate entity and merge it with startup Cambridge Quantum Computing. Honeywell will remain the majority shareholder in the new entity.

7. IBM

IBM is the legacy technology company that is refocusing on cloud computing opportunities. It also has its own quantum computer, which is available for commercial use through the company’s IBM Quantum Services business unit. More than 140 research organizations and companies, ranging from financial services companies for car manufacturers for energy producersuse IBM quantum computing services.

The company recently announced that it reached a new agreement with government contractor Raytheon Technologies (New York Stock Exchange:RTX) to develop artificial intelligence and quantum computing for the aerospace, defense and intelligence industries. The US government will be one of the main clients of the research collaboration.

Are Quantum Computing Stocks a Smart Investment?

Quantum computing is still in the early stages of development, but many research dollars are being funneled into this advanced technology. Although pure quantum computing stocks are still rare, investing in tech giants with exposure to quantum computing could deliver impressive returns for decades to come.

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