Quantum computing stocks have emerged as one of the hottest investment themes of 2024. The Defiance Quantum ETF has soared 49.4% year to date, nearly doubling the broader market’s robust 24.3% gain. While widespread commercial quantum computers might take years to develop, major technological breakthroughs have sparked an early rush into what many see as the next computing revolution.
In 2024, significant milestones suggest we’re approaching a technological tipping point. Quantum computing made headlines with its Willow quantum computing system, which demonstrated the ability to reduce errors as the number of qubits increased exponentially. This breakthrough solves a challenge that has stumped researchers for nearly 30 years.
Willow completed a benchmark computation in under five minutes that would require today’s fastest supercomputers 10 septillion years to solve. Meanwhile, quantum computing start-up Infleqtion achieved another first by demonstrating a practical materials science application using logical qubits. This breakthrough, which delivered a sixfold increase in computational accuracy, hints at quantum computing’s potential to revolutionize various fields, including superconductors.
While quantum computing remains in its infancy, these early breakthroughs, driven by tech giants like Alphabet and Nvidia, suggest we might be on the brink of a computing revolution. Two companies are pioneering this transformative technology and could supercharge portfolios in 2025 and beyond. IonQ has emerged as one of 2024’s standout quantum computing stocks.
The company’s novel approach uses ionized atoms as the heart of its quantum systems, enabling longer and more sophisticated calculations with fewer errors than competing approaches. IonQ’s platform integrates with all major cloud providers and supports multiple programming languages, making quantum computing highly accessible to developers and researchers. IonQ has expanded into quantum networking, working at the intersection of quantum computing and the future quantum internet.
Emerging investments in quantum tech
However, despite IonQ’s impressive 258.5% stock gain in 2024, the company remains unprofitable and faces significant technological and commercialization risks. The quantum computing industry is still in its early stages, with uncertain timelines for achieving practical advantages over classical computers.
Rigetti Computing employs a fundamentally different approach to quantum computing than IonQ, using superconducting circuits instead of trapped ions. Rigetti’s vertically integrated strategy includes Fab-1, the industry’s first dedicated quantum foundry, giving Rigetti control over the entire quantum chip development process. This in-house manufacturing capability allows for rapid innovation cycles.
Rigetti’s latest Ankaa quantum processor architecture has achieved 98% two-qubit gate fidelity, marking significant progress in quantum performance. The company’s modular chip design allows for scalable quantum systems built from smaller, identical components. Rigetti has established strong partnerships across government, research, and commercial sectors.
However, like other quantum companies, Rigetti faces major technological hurdles and remains unprofitable. The stock’s 851.2% surge in 2024 and valuation at 130 times sales indicate investors are pricing in significant future growth potential. With its integrated manufacturing approach, improving quantum performance metrics, and clear technology roadmap through 2025, Rigetti presents an intriguing option for investors seeking exposure to superconducting quantum computing technology.
While tech giants like Alphabet and Nvidia have made significant strides in quantum computing, their massive market capitalizations mean quantum breakthroughs will likely have minimal impact on their stock prices. Pure-play quantum companies like IonQ and Rigetti offer more direct exposure to the technology’s potential, though with considerably higher risk. Each represents a different technological approach — trapped ions versus superconducting circuits — and both could emerge as leaders in a massive new computing market.
Given quantum computing’s early stage and technical complexity, many investors may prefer a more diversified approach, balancing pure-play quantum stocks with established tech leaders advancing in the field. With quantum computing potentially approaching an inflection point, investors now have multiple ways to position themselves for what could become one of the most transformative technologies of our time.
Johannah Lopez is a versatile professional who seamlessly navigates two worlds. By day, she excels as a SaaS freelance writer, crafting informative and persuasive content for tech companies. By night, she showcases her vibrant personality and customer service skills as a part-time bartender. Johannah's ability to blend her writing expertise with her social finesse makes her a well-rounded and engaging storyteller in any setting.
