It’s been more than two decades since quantum computing was first developed, but Wall Street has started to warm up to the technology’s long-term prospects. Several pure-play stocks went public in 2021, when investor sentiment was sky-high.
Quantum computing technology harnesses the power of quantum mechanics, utilizing effects like superposition — the phenomenon that occurs at the subatomic scale in which objects have no clearly defined state. It’s exciting because this field of research promises to accelerate computing speed by an order of magnitude greater than what’s possible today.
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However, while quantum computing has made great strides in just a few years, the technology is still mostly in the research and development stage. Quantum computers are continually improving and becoming more affordable to develop, and the advent of cloud computing is making quantum technology even more accessible for researchers and software developers. Computing power needs are ballooning as the digital economy and artificial intelligence (AI) expands, with spending on global cloud computing alone predicted to rise to $1 trillion annually within the next decade. Quantum computing could emerge as a key technology by the end of the 2020s as the cloud and AI continue to develop rapidly.
Best quantum computing stocks in 2023
Best quantum computing stocks in 2023
Quantum computing pure-play companies are few. Some very tiny, high-risk businesses like Rigetti Computing (RGTI -13.23%) went public early in the pandemic but are now approaching penny stock status. A number of companies creating software for quantum computers also exist, such as security software start-up Arqit Quantum (ARQQ -4.07%) and Quantum Computing (QUBT -0.77%). A quantum computing ETF is also available to get more general exposure to this nascent industry.
Nevertheless, many larger tech businesses and semiconductor designers are increasing their activity in the quantum realm. Here are some top companies with a hand in the actual development of quantum computers:
Company | Market Capitalization |
Description |
---|---|---|
IonQ (NYSE:IONQ) | $2.11 billion | The first pure-play publicly traded quantum computing stock, which had its IPO via a special purpose acquisition company (SPAC) merger earlier this year. |
Microsoft (NASDAQ:MSFT) | $2.50 trillion | The software giant with a hand in all things technology, including labs dedicated to developing quantum computers. |
Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) |
$1.56 trillion |
The parent of Google also has a growing cloud computing segment and a large investment arm. |
Nvidia (NASDAQ:NVDA) | $1.02 trillion | An emerging leader in semiconductor design and software for next-gen computing development. |
Honeywell (NASDAQ:HON) | $133 billion | An industrial conglomerate that developed its own quantum computer and is set to merge its quantum computer services with a quantum software start-up. |
IBM (NYSE:IBM) | $126 billion | The legacy tech giant is now refocused on cloud computing needs, including a quantum computing segment. |
FormFactor (NASDAQ:FORM) | $2.46 billion | A small semiconductor equipment company that makes cryogenic |