The technology space has a long history of game-changing innovations: from the world's first computers to the internet and smartphones. And over the past few years, another area of great potential has emerged. I'm talking about quantum computing. Shares of pure play quantum companies such as D-Wave Quantum, Rigetti Computing, and IonQ have soared in the quadruple digits over the past three years as investors scrambled to get in on possible winners.
But it's important to note that this technology is complicated, so companies in the space aren't likely to see revenue reach incredibly high levels right away.
So, should you invest in quantum computing stocks in 2026? Yes -- if you separate hype from reality. Let's do just that.
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Building quantum systems
First, a quick note on quantum computing. The technology relies on the behavior of subatomic particles for calculations, and these particles can scale up exponentially -- allowing them to handle problems that aren't possible for today's classical computers, even the most powerful supercomputer. The problem is that building quantum systems is complex, the particles -- known as qubits -- are fragile, and challenges are many. One key challenge is error generation, a problem that must be solved in order for quantum computers to be generally useful.
Today, pure play companies such as those I mentioned above offer access to their quantum hardware through cloud service providers and are generating revenue. And even certain tech giants like Microsoft and Alphabet (GOOG +0.14%) (GOOGL +0.16%) are developing their own quantum chips. But it may take years for quantum computers to become generally useful.
Jensen Huang comments on quantum
Last year, Nvidia (NVDA 3.43%) chief Jensen Huang suggested it may take 20 years for that to happen, then a few months later, he became more bullish on the pace of development. Alphabet chief Sundar Pichai said we may be five to 10 years away, according to a Bloomberg report about a year ago.
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Key Data Points
Meanwhile, as mentioned earlier, quantum computing stocks have skyrocketed over the past few years as investors aimed to bet on the next big thing in technology.
So, what should we expect moving forward? Quantum computing may be a game changer in the years to come, and it isn't too early to invest in potential winners. Now is a great time to buy these stocks -- but be prepared to hold on for a number of years. While it's likely that quantum companies will report breakthroughs and milestones reached this year and over the next few years, it will take time for these platforms to become a part of our daily lives.
This means investors may have to be patient, but rewards over the long run could be huge.
