“If you are confused by the underlying principles of quantum technology – you get it!” - Kevin Coleman
Since the 1980s, quantum computers have captivated scientists, and now moneyed investors have begun to pay attention to them as well. There is still more than a decade before a fully-fledged quantum computer will be available, but companies are exploring how it might improve their business results when it's ready for commercial application.
Recent advances in quantum computing have aided the development and construction of these machines at an increasingly affordable cost. Therefore, quantum computing could be one of the most important technologies and investment trends emerging in the upcoming decades.
Here’s a look at some of the companies that are making major waves in the Quantum Computing world. These companies may not pay off right away, but there are many great investing opportunities.
IBM leads the board in the field of quantum. This investment option is currently trading at $125 and has a price-to-earnings ratio of 14.25, which makes it an affordable investments in the market. It also pays dividends. More than 100 partners are working with IBM Quantum Network in various industries to develop tangible commercial applications. IBM Quantum Network users have free access to quantum computing.
Alphabet (Google), in 2019 first claimed quantum supremacy after their advanced computer outperformed conventional ones. Data is an advantage with Google that many organizations do not have. As the world's leading search engine, it will be able to leverage data once Quantum Computing becomes functional. In addition to developing new quantum processors and algorithms, Google AI Quantum is also expanding its framework and fostering innovation.
Amazon offers quantum computing on AWS through Amazon Bracket which provides access to D-Wave systems, a Canadian quantum computing company. Intel, the semiconductor giant, is advancing the spin qubit technology in silicon, which has a scaling advantage over superconducting qubits. The company has a unique approach called spin qubits. Microsoft created the Azure Quantum open cloud ecosystem, and are making progresses with Topological qubits. They are known to reduce total number of qubits needed for performance and also increases stability.
Besides these, Honeywell, NVIDIA, Quantum Computing, Inc., Alibaba, Tencent, Nokia, AIrbus, HP, AT&T, Toshiba, Mitsubishi, AMgen, Biogen, etc. are also some of the giants dabbling in the quantum computing ecosphere.
There have also been announcements from smaller companies that have committed to developing a full-scale quantum computer by 2025. For its part, PsiQuantum, a quantum company based in the US, intends to develop a full-scale quantum computer by 2025. The company secured a $450 million funding round to reach a valuation of $3.15 billion.
One of the competitors in the race to build a practical quantum computer, IonQ, is planning to go public by merging with a Special Purpose Acquisition Company (SPAC) called dMY Technology Group, Inc. III for a valuation of $2 billion. Other startups on the scene are Quantware, IQM, Riverlane, Quantum Motion, Pasqal, Rigetti, etc.
On the other hand, investors who want a cost-effective way to profit passively from quantum computing should consider this one EFT: Defiance Quantum ETF (QTUM). One can invest in this ETF for financial exposure to Technology Equities. This ETF is designed to track an index: BlueStar Quantum Computing and Machine Learning TR Index - USD. It provides physical exposure, which means that you can own the securities making up the index.
Quantum computing has an immense potential of changing multiple industries, but it is not ready yet and may take several decades for the benefits to reap. While would be fine to include some of these companies that are achieving breakthroughs with quantum computing to build your investment portfolio, it is also vital to reduce risks by diversifying and not investing in a single investment. Once quantum computing becomes fully operational, it will impact everyone which would largely benefit the tech industries themselves.
Note: Investors should not take the above information as a recommendation, but as some ideas to consider. The author holds no positions in any of the stocks mentioned above.