Want to Invest in Quantum Computing? 3 Stocks That Are Great Buys Right Now

Recently, quantum computing stocks have experienced significant growth, catching the attention of investors. However, it's important to question whether investing in pure-play quantum computing companies, like IonQ and Rigetti Computing, is truly the best option right now.

While artificial intelligence (AI) remains a popular topic with potential for market influence, quantum computing is emerging as a new contender. Over the past six months, experts in quantum computing have seen their stock values rise dramatically. For example, IonQ's shares have doubled, and Rigetti Computing's shares have increased by over 1,000%.

Yet, purchasing shares in these rapidly rising companies might not be wise at this moment. While they may hold promise for the future, both companies are currently struggling financially, lacking substantial revenue and relying primarily on funding from stock sales and loans. There's always the risk that future research in quantum computing may not yield successful results, raising concerns about the stability of these investments.

Instead of betting on these volatile stocks, consider safer options in the quantum computing market. Recently, much of the excitement around quantum computing has stemmed from advancements by technology giants like Alphabet, Nvidia, and Microsoft. Investing in these larger companies can provide exposure to the quantum computing space with relatively reduced risks.

The Catalyst Behind the Boom

The recent surge in quantum stocks can be traced back to a breakthrough made by Google Quantum AI, which is a subsidiary of Alphabet. They unveiled a new quantum computing chip named Willow, significantly advancing the field. Following this announcement, stocks like IonQ and Rigetti saw noticeable increases in value.

However, Google's announcement also highlighted that significant work is still required before these technologies can be used commercially. The Willow chip represents only a step in a long pathway to fully functional quantum computers. While it was an impressive development, it will take years to achieve commercial-grade performance.

Therefore, investing in Alphabet allows for participation in both AI advancements and the long-term potential of quantum computing, all while aligning with a well-established tech leader.

Insight from Influential Players

Nvidia, another tech giant, has a strong presence in the quantum computing realm. The company is working on integrating quantum computing technologies with traditional computing systems, which is essential for developing user-friendly interfaces connecting both types of computing. When Nvidia's CEO, Jensen Huang, spoke about the future of quantum computing, he emphasized that achieving useful quantum computers might take substantial time.

His statements caused a noticeable drop in the stock prices of IonQ and Rigetti, reinforcing the idea that although quantum computing is promising, it is not an immediate solution. Nvidia's ongoing research in this field, combined with their significant financial resources, positions them favorably for future developments in quantum computing.

A New Player in the Arena

Most recently, Microsoft has re-entered the conversation in quantum computing with the introduction of its new chip, Majorana 1, which incorporates a novel hardware architecture. Microsoft claims their technology might enable the creation of stable qubits, potentially reaching the crucial milestone of a million qubits more quickly than previously anticipated.

While skepticism is natural regarding claims of rapid advancements, it's apparent that Microsoft is committed to quantum computing research alongside its established business operations. With Microsoft’s stock also experiencing a decline, it presents a more appealing investment opportunity compared to smaller quantum-focused companies.

Overall, the landscape of quantum computing is evolving, and while companies like Rigetti and IonQ are capturing headlines for their rapid gains, large technology firms with robust resources and diversified portfolios appear to be more stable and promising investments in the quantum computing space.

Quantum, Investing, Stocks