The quantum computing industry is on the cusp of becoming the next major innovation, with the capacity to transform data processing and problem-solving capabilities. Consequently, investing in quantum computing stocks could potentially offer substantial returns for investors.
Quantum computers are distinct in their use of qubits, as opposed to classical bits. These qubits, which are fundamentally quantum mechanical, do not have a defined value until measured. The material used to create these qubits varies, and the industry has yet to reach a consensus on the best method. The company that sets the standard for qubit creation could potentially dominate the quantum computing industry.
Understanding the science behind quantum computing is as crucial as understanding the financial aspects. The type of qubit a company plans to use and how they plan to deploy it to overcome quantum noise and other issues will be central to the company’s survival and prosperity.
Companies that do prosper could potentially lay the groundwork for a new trillion-dollar industry. Here are three quantum computing stocks worth considering.
IonQ (NYSE:IONQ) plans to use small, modular quantum computers networked together to tackle big problems. Their latest product, the 32 qubit IonQ Forte, uses trapped ions as qubits. Although 32 qubits may seem low, IonQ’s modular design allows multiple systems to work in parallel, potentially overcoming quantum noise and allowing limitless scaling.
IonQ is also making progress in making its computers accessible to a wider audience. They’ve partnered with a major online service provider to bring the 25 qubit IonQ Aria to a popular web service for quantum computing.
This partnership allows programmers to develop software and services on IonQ computers more easily, giving IonQ a competitive edge in the race to become the standard for quantum ecosystems. However, IonQ is still a small company, and while an investment could yield significant gains, it remains somewhat speculative.
Intel (NASDAQ:INTC) is making strides in the quantum computing industry with the release of a software development kit (SDK) for quantum computers. This SDK simulates the behavior of a quantum computer, allowing programmers to write and debug programs for quantum computers.
Intel is also developing their capacity to produce quantum dots at the scale and purity necessary to be used as qubits. If successful, Intel’s process could become the standard, making them a significant player in the future quantum chip industry.
However, Intel’s cash flow has suffered as the chip shortage has eased, and there is no standard yet for producing quantum qubits. Despite these challenges, quantum chips could provide a path back to profit for Intel.
Honeywell (NASDAQ:HON), while not traditionally known for their quantum computers, has made significant strides in the industry through Honeywell Quantum Solutions. Like IonQ, Honeywell uses trapped ions to power its quantum systems.
The company has also made significant advancements in quantum error correction, a crucial aspect of quantum computing. Honeywell and Cambridge Quantum Computing’s joint venture, Quantinuum, has created a topological quantum state that could potentially solve the issue of quantum error correction.
Honeywell is also a safe haven for investment even apart from their quantum computers. In the first quarter of 2023, they reported substantial revenue and net income, with quantum computing only forming a small part of that.
The advancements made by Quantinuum could potentially make Honeywell one of the best quantum computing stocks to buy.
As of the date of publication, the author held a long position in Intel. The opinions expressed in this article are those of the author and are subject to the publishing guidelines of this publication.
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