Investors may struggle with what to make of quantum computing stocks. The technology increases the amount of computing power exponentially. Unfortunately, quantum computing is a highly error-prone technology, and in many respects, it is a solution without a problem.
Both tech giants and start-ups have undertaken efforts in this arena. Still, almost every start-up is a speculative, money-losing company with a nosebleed valuation. Knowing that, investors are probably wise to look at established companies building quantum computing segments.
These three companies below fit the bill. Let's have a closer look at them.
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Alphabet
Admittedly, Google parent Alphabet (GOOGL 1.35%) (GOOG 1.30%) has fostered a comeback recently based on artificial intelligence (AI). Thus, its investors seem focused on its latest Google Gemini update or the AI powering its autonomous vehicle segment, Waymo.
However, investors should also not ignore its advancements in quantum computing. The company has built large-scale quantum computers focused on addressing error correction, a challenge that has plagued the quantum industry.
To that end, it incorporated what it calls a "breakthrough algorithm" on its Willow quantum processor that delivers quantum advantage. This applies the technology to problems in molecular science, materials science, and other areas.
Moreover, investors can expect that quantum computing will play a more significant role in driving this company's revenue in the coming years. Alphabet holds $98 billion in liquidity and generated almost $74 billion in free cash flow over the last year. Hence, unlike the start-ups, investors know the Google parent holds the resources to compete in this field.
NASDAQ: GOOGL
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Furthermore, even with Alphabet stock up by more than 60% over the last 12 months, its price-to-earnings (P/E) ratio of 30 is close to the S&P 500 average earnings multiple of 31, meaning investors can buy this stock at a reasonable price.
Intel
Intel (INTC 5.11%) is another tech giant that investors have written off, as its chip industry competitors beat it on innovation, leaving investors with questions as to whether it could stay relevant in today's tech market. Nonetheless, current CEO Lip-Bu Tan is reorienting Intel with an engineering-first culture, and one area of focus is quantum computing.
The company recently introduced its Tunnel Falls quantum chip, which it has made available for research. Also, its Horse Ridge II cryogenic control chip has helped it overcome scalability issues, one challenge quantum computing technology faces.
Also, despite its struggles in recent years, Intel has attracted investor interest, including from the Trump administration, which invested in the company earlier this year. Additionally, its free cash flow turned positive in the third quarter of 2025, coming in at $896 million. That helps give Intel the financial stability it needs to advance its technology.
Indeed, its recent return to profitability makes its P/E ratio a poor measure of its valuation. Still, its stock is up by more than 80% over the last year.
NASDAQ: INTC
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Furthermore, a price-to-sales (P/S) ratio of 3 is below the S&P 500's 3.4 average and allows investors to buy into Intel's recovery at a reasonable price. As Intel's turnaround continues, now might be a good time to buy before more investors become aware of Intel's growing quantum capabilities.
IBM
In recent years, International Business Machines (IBM 0.62%) has become better known for its cloud computing capabilities. However, it has long led the way in supercomputing, and to that end, it developed its first quantum computer in 2019.
The advancements have continued since that time, and it has just released its IBM Quantum Nighthawk, a 120-qubit computer that can run circuits with more complexity while keeping a lid on error rates. Looking forward, its quantum advantage promises improvements over classical-only problem-solving methods, and by 2029, it plans to deliver a "fault-tolerant" computer that incorporates technology to more efficiently correct errors.
Investors should expect such advancements to continue amid the $14 billion in free cash flow it forecasts for 2025. About $6.3 billion of that will cover its dividend, which rises annually and returns 2.2% yearly. That frees the rest of its free cash flow to invest back into its business.
NYSE: IBM
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Additionally, the stock is up more than 30% over the last year amid its growing relevance in today's tech world. Also, as the pace of growth rises, its 37 P/E ratio has become more palatable, positioning IBM for continued gains, which are likely to be increasingly driven by quantum computing in the coming years.
