Despite some wild swings in recent weeks, quantum computing stocks remain sizzling hot. Shares of Rigetti Computing (RGTI +0.34%) are up more than elevenfold over the past 12 months. D-Wave Quantum (QBTS +1.75%) stock has skyrocketed more than 600%. IonQ's (IONQ +0.45%) share price has gained more than 250%.
However, the volatility seen so far in 2025 underscores the risks associated with these high-flying stocks. Can you invest in quantum computing without taking on so much risk? Yep. If you're looking to buy quantum computing stocks right now, two stand out as the hands-down safest picks.
What's the big deal about quantum computing?
Before we get to those two safe stocks to buy, let's first address an important question: What's the big deal about quantum computing? The short answer is that quantum computers hold the potential to perform calculations extremely fast and even be exponentially more powerful than the most advanced supercomputers today.
One key factor behind the speed of quantum computers is that they use quantum bits (or qubits) instead of regular bits. Regular bits are either equal to zero or to one. Qubits can be equal to zero, one, or both simultaneously. This might sound strange, but it's possible through a quantum property called superposition. With superposition, quantum particles can have multiple states at the same time until they're observed.
Another mind-boggling aspect of quantum computers is that quantum particles can be entangled. This means two particles are connected regardless of how far apart they are. Traditional computers execute processes step by step. Quantum computers can execute many processes simultaneously thanks to quantum entanglement.
To be sure, quantum computers probably won't be ideally suited for all applications. However, they could help in lots of ways, including developing more advanced artificial intelligence (AI) models and creating more secure encryption codes (and making current ones obsolete).
The two safest quantum computing plays
While Rigetti Computing, D-Wave Quantum, and IonQ have promising quantum computing technology, there are two key concerns with these stocks for investors. First, none of these companies are profitable yet. Second, no one knows for sure how long it will be before quantum computing achieves commercial success.
The good news for investors is that a few companies that are at the forefront of quantum computing are already highly profitable and should continue to be even if it takes a few decades for quantum computing to fulfill its potential. I think the best and safest stocks in this group are Google parent Alphabet (GOOG +0.30%) (GOOGL +0.29%) and Microsoft (MSFT +1.65%).
NASDAQ: GOOGL
Key Data Points
Alphabet's Google unit deserves much of the credit for kicking off the recent quantum computing boom. In December 2024, Google introduced its new Willow quantum chip. This chip caused tremendous excitement because it reduces errors exponentially as more qubits are used. (Reliable error correction is a big challenge with quantum computing.) Willow also performed a calculation in under five minutes that Google said would take one of the fastest supercomputers available today 10 septillion (10,000,000,000,000,000,000,000,000) years to complete.
Google's breakthrough cemented its position among the leaders in quantum computing. However, Alphabet's fortunes certainly don't hinge on its quantum computing efforts. The company's profits of $19.7 billion in the third quarter of 2024 alone are greater than the market caps of Rigetti, D-Wave, and IonQ combined.
Microsoft hasn't made as big of a splash in quantum computing over the last year as Google has. But the tech giant is pioneering the technology. For example, Microsoft's Azure Quantum platform is used by several quantum computing companies including IonQ and Rigetti.
NASDAQ: MSFT
Key Data Points
Like Alphabet, Microsoft can afford to invest heavily in quantum computing even if its bet doesn't pay off. The company raked in profits of $24.7 billion in its latest quarter -- even more than Alphabet did.
Better pick: Alphabet or Microsoft?
Which of these two relatively safe quantum computing stocks is the better pick? I like both of them, but if I had to choose only one it would be Alphabet.
Valuation is one factor in my decision. Alphabet is cheaper than Microsoft on almost every commonly used valuation metric, including trailing 12-month and forward price-to-earnings ratios and price-to-earnings-to-growth (PEG) ratio.
I also think Alphabet's growth prospects will be stronger than Microsoft's over the next decade. The company isn't dependent on another player for its AI models as Microsoft is with OpenAI. Alphabet's Waymo unit is the leader in the robotaxi market, which I suspect could take off hugely in a few years. And if I had to wager on which company is more likely to ultimately be the bigger winner in quantum computing, I'd bet on Alphabet.
