Best Quantum Computing Stocks

Jump straight to it: The best quantum computing stock is IBM.

Looking for quantum computing stocks? Given the incredible pace of modern technology, it’s difficult to imagine significant improvements in current-era supercomputers. Even our mobile devices represent a marvel in innovation. For instance, the now-ancient Apple (NASDAQ: AAPL) iPhone 6 is 32,600 times faster than any of the computers used to power the Apollo moon landings.

Yet a radical paradigm shift may be just over the horizon with quantum computers. Essentially a wholesale rethink on digitalization, this advancement will likely send today’s supercomputers into obsolescence. To profit from this coming trend, here are the best quantum computing stocks to consider in your investments.

Quick Look: Best Quantum Computing Stocks

5 Best Quantum Computing Stocks

As the field of quantum computing continues to expand and show great potential for technological advancements, investors are looking to capitalize on this emerging market by investing in the best quantum computing stocks available.

1. IBM (NYSE:IBM)

One of the legacy tech firms, IBM admittedly has seen better days. However, its transition toward relevant innovations has made IBM one of the quiet heroes over the trailing year. Regarding quantum computing, “Big Blue” partnered with hundreds of Fortune 500 companies, national laboratories and academic institutions to drive research and development on a massive scale.

2. Alphabet (NASDAQ:GOOGL)

Perhaps best known for its Google search engine, Alphabet gradually blossomed from its core search business to practically owning the internet. Indeed, googling a topic is part of the national lexicon, giving the underlying company unprecedented influence. Naturally, Alphabet is among the frontrunners in quantum computing, with a recent article from The Wall Street Journal declaring that the company is aiming for a commercial-grade quantum computer by 2029.

3. Alibaba Gr Hldgs (NYSE:BABA)

The flagship company of China, Alibaba is emblematic of the dramatic rise of the world’s second-largest economy. Initially focused on e-commerce, Alibaba has since blossomed into a tech powerhouse, with its influence covering several relevant businesses. With experts projecting China’s economy to overtake the U.S. around 2027 to 2028, it’s only natural that Alibaba is exploring quantum computing developments and applications. Further, the Chinese government has a vested interest in leading this burgeoning field.

4. Microsoft (NASDAQ:MSFT)

One of the biggest names in the consumer electronics space, Microsoft became a pandemic winner as its underlying suite of business software proved indispensable during the nationwide lockdowns. Therefore, just on its relevance alone, MSFT stock represents a viable investment. But on a longer-term perspective as well, Microsoft provides much potential thanks to its huge investments in pioneering quantum computing hardware.

5. Intel (NASDAQ:INTC)

Long considered one of the top players in the semiconductor technology market, Intel in recent years surprised investors — and not necessarily in a pleasant way. Unfortunately, executive scandals and lack of competitive firepower saw INTC stock uncharacteristically meander without purpose. However, management is looking to get back on track with its engineering research on quantum computing processors, targeting production-level platforms within a decade.

Overview of Quantum Computing

Over the years, computers and smart devices have grown smaller yet more powerful and practical, enabling multiple conveniences that were simply unimaginable a generation ago. Yet it’s also possible that current consumer-level computing platforms will hit an innovation peak. After all, semiconductor systems can only get so small before they become a physical impossibility. But that’s also why quantum computers you can build — and by logical deduction, quantum computing stocks you can build — are so compelling.

A useful analogy of the first classical computer is a single-lane highway. Though not the most efficient system in the world, it got people rapidly from point A to point B. In the next few decades, computers and later smart devices became much quicker and more interconnected. Therefore, the single-lane highway transitioned into a network of multi-lane freeways. Drivers could now move freely across several routes.

Still, you can only build so many roadways before the entire infrastructure becomes infeasible. That’s where quantum computers come into the picture. Rather than adding more lanes or more routes, quantum computing is the equivalent of the entire transportation network: cars, trains, airplanes, boats, helicopters and anything else that moves. In other words, users are no longer limited to one plane of movement but several.

Quantum computing is possible because instead of relying on binary 1 and 0 bits, this revolutionary innovation utilizes qubits or quantum bits. Long story short, qubits can be in a state of either 1, 0 or a combination of both, a concept called superposition. Basically, qubits provide computational infrastructures with unprecedented versatility and dexterity, facilitating computations that would have taken normal machines thousands of years to resolve. This profound potential should catapult these stocks over the long haul.

Features to Look for in Quantum Computing Stocks

To make informed investment decisions, it's crucial to understand the key characteristics that distinguish potentially successful quantum computing companies. Let's explore some of the essential features to look for when evaluating quantum computing stocks.

1. Versatility

One of the main catalysts for these stocks is that the underlying innovation, once matured, could execute applications and computations that would take current-generation supercomputers several years to complete or solve. Eventually, such innovation could make its way down to the consumer level. While this is the ultimate long-term goal, it will take time to get there. During the interim, quantum computing companies should have other enterprises to keep them busy.

2. Financial Resilience

Very much related to the versatility argument, the underlying businesses of the best quantum computing stocks will feature strong financials. First, you should check that your prospective company demonstrates a history of revenue growth. Second, you should look for robustness in the balance sheet. Research and development in quantum computing will take time, which means it will take money.

3. Established History

Though it’s tempting to look at singularly focused companies in the technology sphere due to their upside potential, with these stocks, you should concentrate on organizations with a long track record of success and excellent brand reputation. Part of the reason is that top firms attract great talent — and quantum computing is a market that will demand the best and brightest.

Best Online Brokers for Quantum Computing Stocks

In the years ahead, quantum computers could represent the missing piece that brings innovations such as artificial intelligence to the next level. As such, you’ll want to keep close tabs on quantum computing stocks. But despite multiple potentialities, this burgeoning market will take years to mature. While early experiments in quantum computing impressed onlookers, researchers only put the platform under limited testing parameters.

Therefore, the most viable of these stocks right now tend to be well-established blue chips. Only companies in this elite, rarefied space have the funds necessary to build these hyper machines. Because of this dynamic, investors interested in this field should choose online brokers that best fit their lifestyle and preferences.

Below are some of the best online brokers for quantum computing stocks.

Betting on a Profound Computing Development

Fundamentally, the architecture underlining current computing technology can only go so far. In prior decades, semiconductor firms raced to develop smaller and smaller chips. But the laws of physics will eventually put a hard stop on this search for diminution.

What society needs is a radical new step, and that’s exactly what quantum computing epitomizes. By enabling machines with unprecedented capacity, it can solve calculations and complete processes that are simply impossible using present-day equipment. With multiple blue chips deeply involved in research and development, quantum computing stocks provide a compelling opportunity for investors with a long time horizon.

Frequently Asked Questions