Investors Eye Quantum Computing Stocks as Future Opportunities

Many investors see quantum computing as the next major investment opportunity. McKinsey projects that quantum technology could be worth trillions within ten years.

These advanced computers promise to execute calculations in seconds, outpacing today’s supercomputers, which would take thousands of years for the same tasks. This technology could transform sectors like cryptography, drug discovery, and weather forecasting.

Investment Options in Quantum Computing

Investors interested in this field have compelling options. Google-parent Alphabet (NASDAQ: GOOG; GOOGL) is a leading player in quantum computing.

Alphabet’s Google Quantum AI has set significant milestones, achieving two of six planned breakthroughs. In 2019, the Sycamore processor completed a calculation that would take traditional computers about 10,000 years. Recently, they improved quantum error correction.

In December 2024, Google unveiled the Willow quantum chip, which significantly reduces errors and completed a benchmark computation in under five minutes—something that would take supercomputers 10 septillion years.

Besides its quantum endeavors, Alphabet is fueled by its advertising revenue from Google Search and growth from Google Cloud, making it the most attractively valued of the “Magnificent Seven” stocks, trading at 18 times forward earnings compared to the S&P 500’s multiple of 22.

Exploring Emerging Players

For those preferring smaller, focused companies, IonQ (NYSE: IONQ) offers a pure-play investment in quantum technology, with a market cap below $12 billion.

IonQ has quantum hardware available on major cloud platforms and strong partnerships with firms like Airbus, General Electric, and Nvidia.

The company has launched three quantum systems: Aria in 2021, Forte in 2023, and Forte Enterprise in 2024, integrating quantum with classical computing. IonQ expects to launch its Tempo quantum computer soon.

IonQ’s unique ion trap architecture provides competitive advantages, especially in error correction. Since its 2021 NYSE listing, the company’s revenue has doubled annually, forecasting between $75 million and $95 million in 2025—representing a growth of 97% year-over-year.

Understanding the Risks

Both stocks come with risks. IonQ, while rapidly growing, remains unprofitable. Delays in quantum computing advancements could impede its success. Additionally, competition may introduce superior technologies.

Alphabet also faces challenges, including potential changes due to antitrust lawsuits and the risk of disruption to its advertising model from generative AI.

Should You Invest in Alphabet Now?

Potential investors should weigh the risks carefully. Notably, Alphabet did not make the Motley Fool’s recent list of recommended top stocks for significant returns.

Historical examples demonstrate the potential for substantial returns, showing that timely investments can yield impressive gains.

Suzanne Frey of Alphabet is on The Motley Fool’s board. Keith Speights has stakes in Alphabet. The Motley Fool recommends Alphabet and Nvidia among other companies, following their disclosure policy.

The views expressed here belong to the author and do not reflect Nasdaq, Inc.