Quantum Computing: An Investment You Won’t Regret
Introduction
How do we know what new technologies are going to revolutionize our world? Well, every revolutionary technology has a tangible impact. We’ve seen AI take over the world so quickly because of its potential to enhance the human experience for businesses, governments, and regular people. It’s helping everyone optimize what they do, whether its finding ways to modernize business processes, help develop new cybersecurity technology, or write my English papers. However, we may be on the brink of another technology revolution with quantum computing, a new revolutionary technology allowing us to exponentially increase our potential as a society. So let’s dive into the quantum world to explore the technology and its potential for us as investors to 10x our initial investments.
What is Quantum Computing?
Quantum computing harnesses the power of entangling qubits and superpositions to increase the probability of correct answers to close to 100% when solving incredibly complex problems. Quantum computers aren’t limited to the binary system of 0’s and 1’s that our contemporary computers use; instead, qubits can exist as both 0’s and 1’s at the same time, opening up a new realm of computing that will drastically increase our problem-solving capabilities.
Quantum Computing’s Applications
Harnessing the power of quantum computing allows us to accelerate the development of AI, optimize manufacturing efficiency, enhance contemporary militaries, and change financial services. Using quantum computers can make AI quicker, more accurate, and more efficient. Quantum computers can understand factory data and create effective solutions to production problems, reducing the possibility of accidents and helping with cost minimization. China currently leads the race in quantum development, for their advanced undetectable communications systems and magnetic-field detectors using quantum may have serious military applications. Quantum computers may also be used by financial firms where the technology can more quickly calculate and predict price movements and the pricing of stock options. Essentially, quantum computing can and already is fundamentally changing everything that we do.
The Industry
The quantum computing market size is projected to grow at a CAGR of 32.1% from $928.8 million in 2023 to $6.53 billion by 2030, largely because of its widespread applications to everyday life. Both governments who are interested in its military applications and individual companies who see quantum computing as a way to optimize all of its processes will likely lead to increased research, investment, and the eventual proliferation of the technology. This term, dubbed the “Quantum Computing Race” (where companies and governments compete with one another to obtain the technology as a way to maintain or gain superiority over each other) will further accelerate the industry’s growth.
How can Investors get in on this?
Well, most of the companies currently leading the development of quantum computing are large companies with many other sectors to their businesses, however there are certain, specific companies who build and supply parts for the computers which may be solid investments. Below I have a list of the five best stocks I would look into further as companies positioned to gain from the industry’s growth.
- FormFactor, Inc. (FORM): A semiconductor manufacturer leading the “Quantum Computing Race” by collaborating with other companies to produce quantum computers with ample resources needed to continue R&D
- Microsoft Corporation (MSFT): A diversified superpower making significant breakthroughs in quantum computing as their recent 800x reduction in error rate gives Microsoft their first contemporary, reliable system
- International Business Machines Corporation (IBM): An innovative company increasingly integrating quantum computing with the debut of “IBM Quantum System Two” (the company’s most advanced quantum supercomputer) and “IBM Quantum Heron” (the company’s most sophisticated quantum processor) which are advancing the company’s position in the industry
- Alphabet, Inc. (GOOG): A technology powerhouse with a developing quantum pipeline as the company begins hopes to achieve the most accurate system by 2030 along with an impressive quantum AI system
- IonQ (IONQ): A novel, pure quantum computing company quickly perfecting their commercially-available quantum computers, available to investors at an extremely cheap price
These different stocks have different benefits: larger, more diversified companies like Alphabet, IBM, and Microsoft have access to more resources to intensify their quantum computing sectors, however these resources may be more thinly spread with those businesses having multiple sectors (e.g. software engineering, AI applications, and productivity/business processes); instead, smaller, more specialized companies like FormFactor and IonQ will put increased effort into quantum computing with limited resources and may see setbacks in production and rollout of their products. All of these companies have different sets of strengths, weaknesses, and positions in the “quantum computing race”, which is why doing further research before investing in these stocks is so important.
Quantum’s Investment Timeline
Quantum computers are still extremely hard to build, as assembling complex and delicate parts proves to be a challenge every company still faces. Additionally, expansion in the capabilities of the technology and its components still are extremely important in growing the quantum industry to its full potential. Hence, realizing this growth proves to be a longer-term goal (likely 10–20 years in the future) that can only be achieved when quantum technology can be commercial yet applicable to everyday life. Investing in quantum now is definitely a long-term play, betting on the industry before it explodes to its fullest capacity and exponentially increasing our initial investments.
Conclusion
While the technology is still growing and developing, it certainly has appealing potential with intriguing real-life yet world-changing applications. Innovative companies like Microsoft, IBM, FormFactor, Alphabet, IonQ, and many more are driving the “Quantum Computing Race” where the blossoming of the technology into our world will surely change it forever, which is why investing in it now will likely reap huge benefits in the future.
Sources:
Disclaimer: I am not a finance professional; my articles are purely for educational purposes.
