Investing in Quantum Computing Stocks

Quantum stocks represent the next major breakthrough in modern technology. These systems have little in common with today's digital computers, so experts in the field could become market-beating giants in the long run.

Quantum computing technology harnesses the power of quantum mechanics, utilizing effects like superposition -- the phenomenon that occurs at the subatomic scale in which objects have no clearly defined state. It's exciting because this field of research promises to accelerate computing speed by an order of magnitude greater than what's possible today.

However, while quantum computing has made great strides in just a few years, the technology is still mostly in the research and development stage in 2025. Quantum computers are continually improving and becoming more affordable to develop, and the advent of cloud computing is making quantum technology even more accessible for researchers and software developers.

For example, in December 2024, researchers at the Google Quantum AI group demonstrated a new quantum computing chip called Willow. This chip had the strongest error correction seen to that point and performed extremely well in industry-standard benchmark tests such as the random circuit sampling (RCS) test.

The achievement inspired a quick boom in quantum computing stocks. However, the researchers also made it clear that Willow's performance was just a small step on a long road.

Quantum computing could emerge as a key technology by the end of the 2020s as its viability for cloud and AI tasks continues to develop rapidly.

However, that's a highly optimistic timeline. Many experts would rather point to the mid-2040s as the start date for truly game-changing quantum computers.

The software titan researches and develops all sorts of technology, and quantum computing technology is no exception. Quantum computers need special refrigeration, hardware designed at microscopic levels, and special software, all of which Microsoft (MSFT -0.34%) is developing in its labs. Microsoft also offers researchers access to quantum computing services via its massive cloud platform, Azure.

Quantum computing tech probably won't be a significant driver of Microsoft's financial performance anytime soon. However, the company is helping to develop the next generation of computing technology. Microsoft stock has been a winning investment for decades, and its importance in the software technology field will persist for a very long time.

3. Alphabet

Alphabet (GOOG +3.20%)(GOOGL +3.30%)subsidiary Google, the third-largest public cloud computing platform, has developed its own quantum computing chips, branded Sycamore. The tech behemoth is using quantum computing to advance its AI software systems. In March 2022, it spun off its quantum computing software unit into an independent start-up called SandboxAQ.

Google's interest in better, faster, and smarter methods of computing stems from its leading role in internet search. The company is responsible for organizing massive amounts of digital data, and it can profit significantly by helping all types of organizations leverage the power of that information.

Quantum computing coupled with AI may provide a way for Google to improve the efficiency of large computing systems. This technology is central to the company's efforts to innovate.

4. Nvidia

Nvidia (NVDA -0.65%) has emerged as the global leader in advanced semiconductor designs, powering next-gen tech with its graphics processing units (GPUs) that accelerate computing power. Nvidia is helping to develop quantum computers using its GPUs, retaining its leadership role in developing sophisticated circuitry design. The company is also a leader in AI and machine learning.

Intel (INTC +0.15%) lost its lead in the semiconductor industry. Third-party foundry Taiwan Semiconductor Manufacturing (TSM -1.73%) passed Intel up a few years ago, and numerous companies (including Nvidia) are valued far higher owing to their greater exposure to growth markets like GPUs for AI.

But Intel is mounting a comeback. One of its initiatives includes Tunnel Falls, a quantum computing chip. The silicon-based chip uses Intel's most advanced manufacturing processes and is now available to the research community. Intel says it has partnered with numerous government and university research departments to test Tunnel Falls.

Quantum computing is not central to Intel's plan to regain its dominance in the semiconductor industry. Still, if research yields positive results, it could become an important segment for the integrated chip design and manufacturing giant.

6. Honeywell

Honeywell (HON +0.45%) is best known as an industrial manufacturer that produces everything from aerospace equipment to advanced construction materials to medical devices. However, Honeywell is also a technology firm whose diverse work includes quantum computing.

Honeywell built its own quantum computer unit, which it spun off as a separate business and merged with start-up Cambridge Quantum Computing in January 2024. The new stand-alone entity is called Quantinuum (which is now on its second-gen quantum computer).

Honeywell remains a majority shareholder with a 54% ownership stake. It also supplies Quantinuum with hardware and software as it develops its quantum computing technology. Quantinuum has been particularly focused on developing new cybersecurity services and chemistry.

7. IBM

IBM (IBM +1.05%) is a legacy technology firm that is refocusing on cloud computing opportunities. It also has its own quantum computing chips and systems available for commercial use via the company's IBM Quantum business unit. More than 210 research organizations and companies, ranging from financial services businesses to automakers to energy producers, use IBM's quantum computing services.

In 2021, the company struck a deal with government contractor Raytheon Technologies (RTX -0.16%) to develop AI and quantum computing for the aerospace, defense, and intelligence industries. The U.S. government will be a top customer of the research collaboration. IBM combines an innovative product portfolio with modest stock gains compared to other quantum computing and AI experts.

8. Rigetti Computing

Rigetti (IBM +1.05%) wants to be a one-stop shop for your quantum computing needs. It designs and manufactures its own superconducting quantum chips, integrates them with digital control systems, and offers a platform that blends quantum processors with classical computing to run practical, hybrid workloads.

Like its quantum-specialist peers, Rigetti runs its business on stock sale funds rather than revenue streams. With promising research projects but minimal business operations, the stock looks overheated in the fall of 2025.

9. D-Wave Quantum

Instead of separate ions, D-Wave's (QBTS -12.50%) systems rely on superconducting loops with strong magnetic fields. These annealing circuits work together in groups, gaining pattern-finding power from the way their energy states interact with each other.

This approach still needs extreme cooling, and it's a messy system that only works under sophisticated error correction setups. But the annealing systems can also grow incredibly powerful under the right circumstances.

So D-Wave's quantum computers could outshine rival solutions for certain tasks, but it's also a more complicated technology that might turn out to be a dead end. That's saying something in an industry full of risky, complicated technologies.

And of course, D-Wave's stock is richly valued despite lackluster revenues and negative profit margins. Be careful with these financially unstable specialists, dear investor.

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