What's the hottest new technology right now? And what's the hottest stock in that space? I think the answers to those two questions are easy.
Quantum computing is arguably the hottest new technology. Vaunted consulting firm McKinsey & Company recently stated in a report that 2025 is "the year of quantum." The report noted "surging investment and faster-than-expected innovation" in quantum computing.
No argument is necessary as to which quantum computing stock is the hottest. D-Wave Quantum's (QBTS 23.29%) share price has nearly quadrupled year to date. While other leaders in the quantum computing arena have also delivered big gains, none of them come close to this spectacular return.
This momentum could be only the beginning. Could investing $10,000 in D-Wave Quantum stock make you a millionaire?
The promise of quantum computing
Most experts agree that quantum computing holds tremendous potential. Quantum computers could perform calculations in minutes or even seconds that would take the fastest supercomputers in the world today thousands of years to perform.
McKinsey thinks that four areas will be especially impacted by quantum computing: artificial intelligence (AI) and machine learning (a subset of AI), robotics, climate technology, and cryptography/cybersecurity. Quantum computers could enable major advances in AI that boost companies' productivity and profits. On the negative side, though, the technology could render current encryption standards obsolete.
Fortune Business Insights is on the same page about quantum computing's impact on AI, particularly generative AI. A recent report stated, "The integration of quantum computing with generative AI has the potential to revolutionize business strategies and economic models."
How big is the quantum computing opportunity? McKinsey projects that the quantum technology market could total as much as $72 billion by 2035. By 2040, the consulting firm believes the market could reach $198 billion. Boston Consulting Group estimates that the quantum computing market could total $170 billion by 2040. It also projects that quantum computing will create up to $850 billion of economic value worldwide by then.
Image source: Getty Images.
D-Wave Quantum's advantages
With those numbers supported by reputable consulting firms floating around, it's not surprising that many believe fortunes could be made by investing early in the companies that are leading the charge in quantum computing. D-Wave Quantum is definitely one of them.
D-Wave was founded in 1999, becoming the first commercial quantum computing company. It also released the first quantum applications for production use. Today, D-Wave's technology is used in more than 30 business use cases, including AI.
The company has over 100 customers. The list includes well-known names such as Accenture (ACN 1.07%), BASF (BASFY 0.98%), Deloitte, and Mastercard (MA 0.26%). Over 200 million problems have been submitted to D-Wave's quantum computers so far.
D-Wave's technology has even achieved quantum supremacy, a term used to describe when a quantum computer solves a problem that classical computers can't solve in a reasonable amount of time. Earlier this year, a peer-reviewed paper published in Science, the academic journal of the American Association for the Advancement of Science, confirmed that D-Wave's quantum computer performed a magnetic materials simulation within a few minutes that would have taken supercomputers built with GPU clusters almost 1 million years to handle.
Intellectual property protection shouldn't be an issue for the company. D-Wave Quantum has over 260 patents granted by the U.S. It has more than 550 additional patents either granted or pending worldwide.
Reality check
Will the massive quantum computing opportunity and D-Wave's leadership in the industry, could investing $10,000 in this stock make you a millionaire? Maybe. However, the odds are stacked against it happening.
D-Wave's market cap currently stands around $11 billion. To turn $10,000 into $1 million would require the company to grow into a $1.1 trillion valuation. A lot would have to go right for such jaw-dropping growth to occur.
It's important to keep in mind, too, that D-Wave isn't the only company scrambling to try to dominate the quantum computing market. The list includes deep-pocketed giants such as Google parent Alphabet (GOOG 3.08%) (GOOGL 3.26%), IBM (IBM -0.22%), and Microsoft (MSFT 0.61%). Several up-and-coming quantum computing companies, including IonQ (IONQ 16.45%), Quantum Computing Inc. (QUBT 12.86%), and Rigetti Computing (RGTI 24.98%), are strong contenders as well.
The bottom line is that investing $10,000 in D-Wave Quantum could make you a millionaire over the long run. It's possible, just not probable. However, even if the stock doesn't deliver a 100x return, it could still be a big winner as the quantum computing market takes off.
