Quantum Computing Stocks: Exploring Investment Potential in a Revolutionary Technology

Quantum computing has captured significant interest recently. This technology, still in its infancy, has the potential to transform industries much like the internet and artificial intelligence have done in the past. Investors are keen on companies making strides in this field, hoping for substantial returns.

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Quantum computing differs fundamentally from traditional computing. Classical computers use bits, which can represent either zero or one. In contrast, quantum computers use qubits, which can represent zero, one, or both simultaneously, thanks to principles from quantum physics. This unique capability makes them potentially able to solve complex problems with remarkable speed.

Despite the complexity of the technology, experts indicate we may be years away from practical quantum computers. However, progress continues, and early investors may reap the benefits.

Leading Quantum Computing Stocks to Consider

This February, two major players in quantum computing are worth watching.

Image source: Getty Images.

1. Alphabet

Known best for Google Search, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is a leader in digital advertising, generating billions of dollars annually. With its strong cloud computing services, Alphabet benefits from a growing market, particularly through its AI offerings.

Recently, Alphabet revealed its quantum chip, Willow, which achieved two significant milestones. First, it demonstrated the ability to reduce errors as it scales up operations. Second, it completed a computation in five minutes that would take the world’s most advanced supercomputers longer than the universe’s age to finish. Alphabet aims for Willow to prove useful in practical applications, indicating positive developments for investors in the long term.

2. Microsoft

Microsoft (NASDAQ: MSFT), much like Alphabet, benefits from strong, established business units, including software and cloud computing. In its most recent quarter, the company saw significant growth, with revenue and net income climbing into the billions, while its AI sector grew rapidly to a $13 billion annualized run rate.

Microsoft also provides exposure to quantum computing through its Azure platform, which offers various tools and hardware for businesses to experiment with. The newly launched Quantum Ready program aims to assist companies in leveraging these tools. As businesses engage with this program, it allows Microsoft to capitalize on developing quantum technologies sooner rather than later.

Investing in Microsoft could therefore be a strategic move as it positions itself in this evolving field, with both immediate and long-term potential.

Is Alphabet a Sound Investment?

Before investing in Alphabet, it’s worth considering:

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Suzanne Frey, an executive at Alphabet, serves on The Motley Fool’s board of directors. Adria Cimino currently holds no shares of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Microsoft. They also recommend long January 2026 $395 calls and short January 2026 $405 calls on Microsoft. For a complete disclosure, please refer to their policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.