Two Prominent Quantum Computing Shares to Invest in by 2025
Quantum computing might just be the next major tech innovation after artificial intelligence (AI), but don't expect the market to really bloom for several years. However, the Boston Consulting Group predicts an estimated $840 billion market for quantum computing in the next 15 years, making it an investment opportunity you can't ignore. If you're searching for stocks to invest in now and hold for the long haul, these two companies could be your ticket:
1. Alphabet
Alphabet, Google's parent company, has been dabbling in quantum computing for a while. But it recently took a massive leap forward with the introduction of Willow; a quantum computing processor that swiftly completed a benchmark calculation in just five minutes. Normally, such a computation would take a traditional supercomputer more time than the entire universe has existed. Although it's important to note that the benchmark is for quantum computers, not classical ones, Willow is impressively fast even by quantum computing standards.
Besides its speed, Willow boasts a remarkable accuracy. Alphabet stated in a blog post that Willow can "reduce errors exponentially" and has "cracked a key challenge in quantum error correction that the field has pursued for nearly 30 years." In essence, it's possibly more accurate than its competitors at completing quantum computing processing. Alphabet's rapid progress with Willow gives it a competitive edge in the quantum computing race, but the best part? Alphabet's shares are currently reasonably priced.
Alphabet's stock currently has a forward price-to-earnings (P/E) multiple of just 21, while the S&P 500's P/E multiple is 24. Alphabet's stock is, therefore, relatively affordable at a time when it's making impressive quantum computing breakthroughs. And with Alphabet's involvement in various sectors, including advertising, AI, and cloud computing, investing in it provides a hedge against potential losses in the quantum computing market while also offering the chance to benefit from its advancements in other areas.
2. IBM
While Alphabet might be drawing headlines, IBM shouldn't be overlooked. This tech giant has been investing in quantum computing for years, developing quantum computers and related software. It's already partnered with large corporations to use its quantum computers in various sectors like healthcare and finance.
IBM made significant strides in 2023 by introducing its Condor processor, which boasts 1,000 qubits. The company is aiming to release a "fully error-corrected" quantum computer by 2029, an achievement that would make real-world use cases for quantum computing much more feasible. IBM also has a financial advantage, with $17.6 billion in fourth-quarter sales, $12.7 billion in free cash flow in 2022, and $3.92 in non-GAAP earnings per share. Smaller rival companies might be more appealing, but IBM's resources allow it to dedicate significant resources to research and development, letting it compete in the quantum computing market for the long haul.
IBM already offers a quantum-as-a-service through its cloud computing service, allowing customers to subscribe to quantum computing processing. In essence, IBM is already monetizing quantum computing, making it an appealing choice for investors.
In conclusion, both companies are actively working to take advantage of the quantum computing boom. Alphabet's and IBM's currently undervalued stocks make them even more appealing investment options. It's worth considering these companies to hedge your quantum computing bets while also benefiting from their advancements in other sectors.
The predicted $840 billion market for quantum computing in the next 15 years has made this technology an area worth exploring for potential creditline investments. Alphabet's recent advancements in quantum computing, such as the introduction of the Willow processor, could potentially reduce errors exponentially and offer a competitive edge in the market. In 2029, IBM aims to release a 'fully error-corrected' quantum computer, a significant milestone that could bring real-world applications of quantum computing closer. Investing in companies like Alphabet and IBM now, particularly when their stocks have relatively lower price-to-earnings (P/E) ratios, could provide a hedge against potential losses in the quantum computing market while also allowing for benefits from their advancements in other sectors.
