Quantum computing is on the verge of revolutionizing technology as we know it. Computers using quantum mechanics are projected to have capabilities far beyond even the most advanced supercomputers today. The quantum computing market could reach $90 billion to $170 billion by 2040, according to research from the Boston Consulting Group.
Investors are already positioning themselves to capitalize on this groundbreaking technology. While there are some notable upstart quantum computing stocks, they remain highly speculative due to the still-small market opportunity. Instead, consider these three stocks as great buys right now, during the early years of quantum computing.
They offer direct exposure to quantum computing while avoiding the high risks of investing in unproven startups. Microsoft (NASDAQ: MSFT) is heavily invested in quantum technology. The tech giant recently unveiled Majorana 1, the world’s first quantum chip powered by a topological core—a new state of matter.
Microsoft’s Azure is the second-leading cloud platform globally, and the company is deeply involved in developing models and software.
Investing in quantum technology stocks
This positions Microsoft to potentially benefit from creating and selling quantum computing technology, as well as deploying it throughout its existing businesses.
International Business Machines (NYSE: IBM), or IBM, has emerged as a strong contender in quantum computing. IBM began offering cloud-based access to its quantum computers nearly a decade ago and continues to develop improved iterations. It currently operates more than 13 quantum computer systems with at least 100 qubits and has booked approximately $1 billion in cumulative quantum business since launch.
IBM has built a solid foundation as a hybrid cloud solutions company with expertise in AI and quantum technology, positioning it to work closely with enterprise clients. For investors seeking diverse exposure to quantum computing, the Defiance Quantum ETF (NASDAQ: QTUM) is an exchange-traded fund focused on companies developing and using quantum and AI technology. The ETF has 73 holdings, including top positions in D-Wave Quantum, Palantir Technologies, Rigetti Computing, Ntt Data Group, Alibaba Group, and Koninklijke Kpn.
By casting a wide net with this ETF, investors increase their chances of reaping rewards from the companies that may emerge as significant winners in the quantum computing arena. While practical quantum computers may still be five to 10 years away, these three investment options offer promising opportunities for investors looking to enter this revolutionary field with mitigated risk. As always, investors should consult their financial advisors before making any investment decisions.
Rashan is a seasoned technology journalist and visionary leader serving as the Editor-in-Chief of DevX.com, a leading online publication focused on software development, programming languages, and emerging technologies. With his deep expertise in the tech industry and her passion for empowering developers, Rashan has transformed DevX.com into a vibrant hub of knowledge and innovation. Reach out to Rashan at [email protected]
