Stocks to buy

3 Quantum Computing Stocks You Better Be Buying on Each and Every Dip

Quantum computing is a rapidly emerging technology that harnesses the laws of quantum mechanics to solve problems too complex for classical computers. To function, quantum computers use subatomic particles, such as electrons or photons, to represent and manipulate information in quantum bits (qubits). This technique gives quantum computing companies a potential speed advantage over traditional computing, especially for certain types of problems that involve large amounts of data, intricate predictions, cryptography and artificial intelligence, establishing them as leading quantum stocks.

Similar to generative AI, quantum computing could be revolutionary for the modern digital economy. Its possibilities extend to innovations in various sectors, such as healthcare, finance, energy, logistics and space. Public equity investors have definitely taken notice and shares of pure-play quantum computing businesses have skyrocketed year-to-date. Nonetheless, the technology remains in the early stages of development, and there are many challenges to overcome before it can reach its full potential. Pure-play companies will have to invest a lot of capital to sustain research costs and ultimately make their quantum computers commercially viable.

In this article, we will review three leading quantum stocks that investors should be buying each and every dip.

Alphabet (GOOG, GOOGL)

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Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is the parent company of Google and needs no introduction. The technology behemoth is one of the most dominant players in the internet industry with a world-renowned search engine and a vast array of cloud “workspace” products. On top of that, Google happens to be one of the pioneers and leaders in quantum computing, having achieved a milestone of “quantum supremacy” back in 2019. Quantum supremacy is achieved once a quantum computer has reached the point at which it can perform a task impossible or impractical for a classical computer to conduct.

Google’s quantum computer, called Sycamore, consists of 53 superconducting qubits that operate at near-zero temperatures. According to Google, Sycamore was able to perform a calculation in 200 seconds that would take a state-of-the-art supercomputer 10,000 years to complete. While scientists in China have been able to complete the same calculation within a few hours with a normal supercomputer, the tech giant’s achievement in creating a quantum computer cannot be understated.

To begin commercializing Sycamore, Google offers a cloud-based quantum computing service called Google Cloud Quantum AI, which allows customers and researchers to access its quantum hardware and software. Google has also partnered with several companies and institutions, such as NASA, D-Wave Systems (NYSE:QBTS) and IonQ (NYSE:IONQ), to explore the applications and benefits of quantum computing.

To date, Alphabet’s shares have risen more than 48% YTD. Equity investors will continue to benefit from share appreciation as the company continues to innovate in novel technologies such as generative AI and quantum computing.

International Business Machines (IBM)


International Business Machines (NYSE:IBM) has benefitted from being one of the most established companies in the tech industry, with a history of innovation and research in various fields. Even back in the early 2000s, IBM researchers were already performing quantum computing techniques calculations to solve cryptography problems. IBM’s quantum computer consists of superconducting qubits that operate at near-zero temperatures. Similar to Google and other quantum computing players, IBM offers a cloud-based quantum computing service called IBM Quantum Experience, which allows customers and researchers to access its quantum hardware and software.

IBM also provides a quantum programming framework called Qiskit, which enables users to create and run quantum algorithms on its quantum computers or simulators. IBM has partnered with several companies and institutions, such as JP Morgan Chase (NYSE:JPM), ExxonMobil (NYSE:XOM) and Massachusetts Institute of Technology, to explore the applications and benefits of quantum computing. In recent years, IBM’s revenue growth has been sluggish, but the company remains at the forefront of research and innovations; these factors should keep investors interested and patient and trust that IBM is one of the leading quantum stocks.

Microsoft (MSFT)

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Microsoft (NASDAQ:MSFT) is another tech giant that has been investing in quantum computing for over a decade. Microsoft’s approach to quantum computing is based on topological qubits, which are designed to be more stable and resilient to noise and errors than other types of qubits. However, topological qubits are also more difficult to create and manipulate, and Microsoft has not yet demonstrated a working prototype of its quantum computer, though certain milestones have been achieved this year.

Just like its competitors, Microsoft offers a cloud-based quantum computing platform called Azure Quantum, which allows customers and developers to access its quantum software tools and hardware partners. Microsoft’s hardware partners include IonQ, Quantinuum and Rigetti Computing (NASDAQ:RGTI). Microsoft also provides a quantum programming language called Q#, a quantum development kit (QDK) and a quantum simulator.

With the investment in quantum research and the cloud infrastructure needed to operate quantum computers, Microsoft will surely continue to be a key player in the space. The company’s Azure cloud service will only help pave the way for it to gain commercial success once it is able to successfully build a quantum computer. Investors interested in quantum computing but hesitant to pour their capital into the smaller pure-play businesses, may want to observe how Microsoft will potentially succeed in the space.

On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.