Quantum computing is one of the most hyped technologies on the market, and for good reason. The technology is like something out of a sci-fi novel and could massively advance computing in ways we don't even quite understand yet. It's a technology with true revolutionary power.
Investors interested in this sector may be getting ahead of themselves. While some are betting the widespread commercialization of the technology is just a few years away, there's good reason to think it could be much longer before that happens.
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Alphabet has been working on quantum for years
Before quantum computing grabbed headlines, Alphabet (GOOG 2.27%) (GOOGL 2.01%) was already investing heavily in the field. It has poured a sizable portion of its massive R&D budget and top-tier talent into the effort, leading to milestones like reaching "quantum supremacy" -- beating a classical computer in a highly limited task -- in 2019. This is exactly where Alphabet excels -- transforming revolutionary science into revolutionary technology.
NASDAQ: GOOGL
Key Data Points
Alphabet has resources few can match
Only Microsoft and, to a lesser extent, IBM, can match Alphabet's R&D firepower, both from a financial and personnel perspective. At any point, the company could direct the full weight of its R&D budget toward quantum -- tens of billions of dollars. And when the time comes to commercialize the technology, Alphabet can quickly and readily deploy it through its existing cloud infrastructure.
Alphabet gives you much of the upside with almost none of the risks
If the technology takes five, 10, or more years to reach its potential, Alphabet's steady cash flows mean it never has to worry about where it will find its next six months of funding. That's certainly not true for IonQ, Rigetti, and companies like them. And in the meantime, with Alphabet, you get a mature, highly successful tech company at the forefront of artificial intelligence and a stock that trades at a discount to many of its big tech peers.
