Even the thought of anything being “quantum” can be mind boggling so I’ll put it in words that a 12th grader can connect with.
The conception of quantum computing came in the early 1980s when MIT physicist Richard Feynman proposed the concept of using quantum systems to stimulate systems that computers struggled to do efficiently.
Imagine your regular computer is like a very fast and smart research librarian. It can find answers by checking through books one at a time fast. This works great for most things, but not for the current world of data where there are trillions of books to check.
Now, picture a faster librarian who can check all the books at the same time. That’s what a quantum computers do. They use the rules of quantum physics - how tiny particles like atoms and electrons behave - to process information in a totally different way.
Instead of using regular "bits" of data, quantum computers use qubits. Qubits can be 0, 1, or both at the same time, thanks to a property called superposition. This means a quantum computer can explore several solutions to a problem all at once.
Another cool property is entanglement, where qubits are connected in such a way that changing one instantly affects another, no matter how far apart they are. This helps quantum computers solve certain problems much faster than normal computers.
Drug Discovery: Simulating molecular interactions to accelerate the creation of new medications.
Optimization: Enhancing logistical planning and supply chain management.
Cryptography: Revolutionizing encryption and cybersecurity.
Artificial Intelligence: Boosting machine learning and neural network capabilities.
Like any other technological innovation like semiconductor chips, the internet and artificial intelligence, Quantum Computer’s full use and application will evolve over the next 10-20 years.
Although the technology is in its early stages, some well-known companies like IBM (IBM) , Google (GOOGL) and Amazon (AMZN) have been developing quantum computing products. Other smaller, less-known companies have been tagged in the last few months as up-and-coming quantum computing names.
The following table lists the nine companies associated primarily with quantum computing.
The list will grow quickly over the next six months to a year as quantum computing begins to take some of the spotlight from artificial intelligence. Here’s are the summaries of the top three companies in the space as of now.
IBM (IBM) has been a trailblazer in the quantum computing field. The company pioneered both hardware and software solutions in the early 1990s.
IBM developed quantum systems like the IBM Quantum Experience, enabling researchers and developers worldwide to experiment with quantum algorithms. The company’s long-term focus is on building scalable quantum systems and making quantum computing accessible.
Google (GOOGL) has made significant strides in quantum supremacy. Google’s newest quantum computing chip “Willio” demonstrates that quantum computers can solve specific problems much faster than classical supercomputers.
The company announced last week that Willow performed a standard benchmark computation in under five minutes that would take one of today’s fastest supercomputers 10 septillion years.
Google is considered to be one of the strongest candidates for quantum computing hardware breakthroughs over the next 5 years.
Rigetti (RGTI) specializes in providing full-stack quantum computing systems, combining hardware and software into one integrated offering. Like IBM, Rigetti plans to enable businesses and researchers to leverage their quantum cloud platform for real-world problem-solving.
As with any newer technology developments, quantum computing stocks will see increased volatility as headlines, not fundamental data like revenue and profits, will drive the day-to-day prices.
Over the last month we’ve seen companies like Regetti and Quantum Computing surge more than 600%. Investors should weigh that volatility against the fact that several of the smaller operators in the industry are “moon shot” stocks.
Google, Amazon and IBM are more likely to see sustained upside with less volatility as the quantum computing industry begins to expand.
Investors may consider a portfolio of these stocks to smooth volatility while benefitting from the potential upside of this booming industry as it begins its climb up the steep development curve.
