Investors Eye Quantum Computing Opportunities Within AI Sector

In recent years, investors have witnessed how artificial intelligence (AI) is transforming the technology landscape. Currently, AI applications are widespread, found in software development, large language models (LLMs), and autonomous vehicle training.

Amidst these advancements, a growing focus is shifting towards quantum computing, a unique sector within AI. Companies such as Rigetti Computing, D-Wave Quantum, and IonQ have experienced considerable activity in the market, each positioning itself as a leader in this evolving domain.

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The allure to capitalize on these lesser-known stocks is evident. What if one of these firms becomes the next major player in AI? However, potential investors should proceed with caution. It’s essential to remember that less than a year ago, Rigetti, D-Wave, and IonQ were penny stocks. Instead of getting swept up in the hype, focusing on established companies in the AI sector may yield better long-term results, particularly those likely to integrate quantum computing into their offerings.

Here, we explore two companies well-positioned to make a significant impact in quantum computing and discuss why they present solid investment opportunities right now.

1. Alphabet

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is familiar to many, primarily because it operates Google and YouTube, two of the internet’s most frequented sites.

While the bulk of Alphabet’s revenue comes from advertising, the company has invested heavily in AI-driven services aimed at enhancing its business model. This now includes workplace productivity tools comparable to Microsoft‘s Office suite, cybersecurity solutions, cloud computing infrastructure, and various hardware products like mobile phones.

Beyond its current AI offerings, Alphabet has also been quietly making strides in quantum computing research. In December, the company introduced its quantum chip, called Willow, which showcased reduced error rates and remarkable computational speed. Willow solved a complex problem in just five minutes, a task that would take the fastest supercomputers 10 septillion years to complete.

This achievement speaks volumes about Alphabet’s capabilities. However, it also highlights that quantum computing currently has limited practical applications in the AI sphere. Nevertheless, this situation could actually benefit Alphabet. With an established presence in the AI market and a robust financial position, the company can invest in developing state-of-the-art quantum products. Thus, while Willow may not generate immediate profits, its advancements suggest that quantum computing could eventually be woven into Alphabet’s suite of AI tools—potentially giving it an edge in a competitive market.

Image source: Getty Images.

2. IBM

International Business Machines (NYSE: IBM) has been at the forefront with its series of quantum processors known as Heron, Condor, Eagle, and Osprey. However, it’s IBM’s software platform that excites many investors.

IBM’s quantum computing software, called Qiskit, is designed for quantum developers. This robust application streamlines workflows, aids in code generation, and provides cloud infrastructure to manage workloads across several devices.

While IBM may not be in the spotlight compared to its competitors, it possesses a unique advantage in creating a complete quantum infrastructure by leveraging its hardware and Qiskit software. This integration could set IBM apart as interest in quantum computing grows, positioning it favorably as AI development accelerates.

Seize This Opportunity for Potential Gains

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Occasionally, our expert analysts issue a “Double Down” Stock recommendation for companies poised to see significant success. If you’re concerned about missing your chance to invest, the current market may be ideal to take action before it’s too late. The investment results speak for themselves:

• Nvidia: If you had invested $1,000 when we doubled down in 2009, you’d have $323,920!
• Apple: An investment of $1,000 in 2008 would be worth $45,851 today!
• Netflix: Investing $1,000 when we doubled down in 2004 would have grown to $528,808!

Right now, we’re putting “Double Down” alerts on three remarkable companies, making this a crucial moment for potential investors.

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*Stock Advisor returns as of February 28, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Adam Spatacco has positions in Alphabet and Microsoft. The Motley Fool has positions in and recommends Alphabet, International Business Machines, and Microsoft. The Motley Fool recommends long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

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