Want to invest in quantum computing? One stock is a great buy now.
Quantum Computing These are the hot topics these days. Six months ago, the four largest pure playstock in this market had a total market value of $1.9 billion. Today their total market value has skyrocketed to $15 billion. And it’s not even a peak value – on January 6th, the tally came to the top with $19.2 billion.
But I’m not here to recommend this quartet stock. These four names could become quantum computing giants in the long run, but it seems likely they will run out of gas along the way and collapse. Their business results have so far been little significant, and these physical inventory valuations appear to be based on unrealistic assumptions of rapid advances in quantum computing technology.
Quantum Computing Specialist
Market capitalization
Revenue (TTM)
Net loss (TTM)
Price vs. Sales Rate (TTM)
Aeon Q(NYSE: IONQ)
$8.8 billion
$37.5 million
($171.6 million)
233
Computing is denied(NASDAQ: Lint)
$3.1 billion
$11.9 million
($60.6 million)
258
D-wave quantum(NYSE: QBTS)
$1.8 billion
$9.4 million
($73.8 million)
191
Quantum Computing(NASDAQ: QUBT)
$1.3 billion
$0.4 million
($27.9 million)
3,208
Data collected from FactSet on February 7, 2025 via Finviz.com. TTM= 12 months of succession.
Good luck to these quantum computing experts and their investors. But I would rather invest in more mature business titans who are also interested in quantum computing technology.
Getting research correctly is a matter of sink or swim for pure play sector experts, but large companies can treat this potentially game-changing technology as a minor side gig. And if the quantum revolution hasn’t come for the next few years, I can instead enjoy the benefits from their major businesses.
So let’s move on to the companies that have affected the recent market surge – Google Parent alphabet(NASDAQ: GOOG)(NASDAQ: Google).
Quantum computing enthusiasts in recent months began with a breakthrough by the Google Quantum AI group.
Their new willow chips It shows a promising step in error correction, suggesting that future products may be able to overcome raucous results by using more so-called qubit processing units. The heading portion of that progress report was Willow’s ability to run the benchmark process within five minutes. Digital supercomputers take 10 losses to achieve the same results.
Benchmark tests should be said to be tuned to make the quantum computer look better. Random Circuit Sampling (RCS) tests essentially simulate moderately complex quantum computing processes in a very difficult way with classic computers.
“We check if quantum computers do things that classic computers can’t,” the Google team explained. “The team building quantum computers must first check if they can beat RCS classic computers.”
Therefore, the actual quantum computing functions of Willow Chip did some quantum computing. To be honest, I was even more impressed with the boosted error correction.
However, many investors saw the announcement as a sign of quantum computers currently running wraps around normal computers. A jump to conclusions may be a big movement, but it can be dangerous for your stock portfolio.
Meanwhile, the Google Quantum AI team continues its research. The error correction feature is step 2 of the six-stage roadmap, with the next advancement supposed to be a long lifespan with even better error handling.
It takes years. The last sign on that map is a massive error-corrected quantum computer with millions of qubits, not hundreds. The group has not set a deadline for development that will change the game, but it suggests that other rumblings in the quantum computing field should be around 20 years away.
Alphabet’s Google is far from the only technology Titan committed to advanced quantum computing research.
They are on different paths. IBM(NYSE: IBM) We have more quantum-related technology patents than anyone else. Microsoft(NASDAQ: MSFT) It focuses on enabling quantum computing systems to be used through today’s cloud computing platforms. nvidia(NASDAQ: NVDA) We are building optimized software libraries for quantum-based software development.
One of these tech giants hit me as a better quantum computing investment than the small startups mentioned above. But none of them can compete with today’s alphabet bargain ratings. For example, that price-to-selling (P/S) ratio stops at 6.5. So, if you’re looking for a future quantum computing heavyweight that’s still a great purchase, the alphabet seems to be a check-match for both boxes.
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Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. Anders Bylund There are alphabets, international business machines, and Nvidia positions. Motley Fool has positions for Alphabet, International Business Machines, Microsoft, and Nvidia, and is recommended. Motley Fool recommends the following options: A $395 phone at Microsoft for January 2026 length and a $405 phone to Microsoft for January 2026 short term. To Motley’s fool Disclosure Policy.
