As an ardent technology enthusiast, I’m absolutely thrilled about the prospect of quantum computing being the next big secular trend! Unlike classical computers that work with bits (zeros and ones) separately, quantum computers leverage qubits, enabling them to store both zeros and ones simultaneously. This unique feature empowers quantum computers to process vast amounts of data at astonishing speeds compared to their traditional binary counterparts.
On the other hand, quantum computers are generally bigger, costlier, and use more energy compared to standard servers. Moreover, they often produce a greater number of errors in their output. Consequently, these advanced machines are predominantly utilized for specialized tasks within governmental and academic settings.
As quantum processing units (QPUs) continue to shrink in size, increase energy efficiency, and improve their ability to detect errors, it’s reasonable to anticipate that quantum computing systems will become increasingly applicable for everyday computing tasks. According to Fortune Business Insights, the quantum computing market is projected to witness a significant expansion at an annual growth rate of 34.8% from 2024 to 2032.
Given the current market conditions, it might be wise to consider investing in companies leading the way. Let’s delve into four stocks in quantum computing that could benefit from this growth: IonQ (IONQ), D-Wave Quantum (QBTS), International Business Machines (IBM), and Microsoft (MSFT).
The pure-play quantum stocks: IonQ and D-Wave Quantum
IonQ and D-Wave Systems are companies that primarily focus on quantum computing. They are working diligently on innovative quantum technologies, but at present, they aren’t making a profit and their current revenue isn’t sufficient to justify their short-term market valuations. Yet, given the potential for growth as they expand their businesses, these stocks might prove to be excellent long-term investments.
As a quantum enthusiast, I’m excited to share that IonQ offers three remarkable quantum systems in its lineup: the veteran Aria, the flag-bearer Forte, and the data-center-focused Forte Enterprise. Later this year, we’re set to debut our fourth system, the agile Tempo. Plus, for those who prefer a cloud-based solution, IonQ offers access to its quantum computing systems!
This company creates its Quantum Processing Units (QPUs) using a unique “trapped ion” method to extend the duration that a quantum state remains unchanged (coherence time) and enhance the error-detection capacity compared to conventional QPUs. The firm anticipates a dramatic increase in its quantum computing capability, which it quantifies in Algorithmic Qubits (AQ), from 36 AQ in 2024 to 64 AQ in 2025, followed by 256 AQ in 2026, 384 AQ in 2027, and 1,024 AQ in 2028.
As a passionate advocate for quantum technology, I’m thrilled to share insights about D-Wave, a pioneer in developing quantum annealing tools. These innovative tools help businesses optimize their operations by seamlessly integrating their schedules, workflows, supply chains, and logistics networks into D-Wave’s cutting-edge quantum computing systems.
In essence, D-Wave functions as a “quantum efficiency consultant,” identifying the processes that require minimal energy consumption as the most efficient ones. This approach, if fully realized, could potentially disrupt traditional analytics and digital workflow industries.
D-Wave develops its unique chips and hardware, and has been seamlessly incorporating its Quantum Leap platform into leading global cloud service providers. Currently, over 100 significant clients are utilizing its services, and with the growth of the quantum industry, it could attract even more interest.
Between the years 2024 and 2027, it’s predicted that IonQ and D-Wave will experience a remarkable compound annual growth rate (CAGR) of approximately 88% and 103%, respectively. Despite appearing costly at multiples of 40 times and 72 times their projected sales for the year 2027, these companies could potentially expand significantly over the next several decades.
The conservative quantum plays: IBM and Microsoft
If IonQ and D-Wave are proving challenging for you, established tech giants like IBM and Microsoft provide a more stable investment opportunity within the quantum computing sector.
Over the recent years, I’ve noticed IBM shedding its less dynamic infrastructure services sector and broadening its horizons in hybrid cloud and artificial intelligence (AI) technologies. This strategic move has revitalized its growth, following a period of declining sales and earnings. Yet, IBM has stealthily been advancing its quantum computing division as well. This sector houses a formidable fleet of quantum computers, each boasting at least 127 qubits of computational power. By last year, they had distributed over 80 quantum systems globally, executing more than 3 trillion programs daily.
IBM’s quantum division isn’t projected to bring significant income in the near future, but analysts foresee a strong compound annual growth rate (CAGR) of 16% for their earnings per share (EPS) from 2024 to 2027. The company appears reasonably priced at 26 times its projected forward adjusted earnings and offers a respectable forward dividend yield of 2.3%.
In simpler terms, Microsoft’s growth over the last ten years has been primarily fueled by the development of its cloud, mobile, and artificial intelligence services. However, it has also been making strides in quantum computing by integrating quantum tools into Azure Quantum, collaborating with emerging quantum companies like Atom Computing and Quantinuum, and unveiling a miniature quantum computing chip known as Majorana 1, which is approximately the size of a standard CPU.
The burgeoning business aims to fuel the persistent development of its principal sectors in cloud services, enterprise software, and artificial intelligence. From fiscal year 2025 (ending in June 2028) through 2028, analysts predict a compound annual growth rate (CAGR) of 14% for Microsoft’s EPS as it expands its extensive business network. Although the stock appears somewhat expensive at 33 times its forward adjusted earnings and offers a minimal forward yield of 0.7%, it remains a well-balanced method to gain some investment in the expanding quantum market.
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2025-07-22 14:20