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Want to Invest in Quantum Computing? 5 Stocks That Are Great Buys Right Now | The Motley Fool

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  Published in Stocks and Investing on Thursday, October 16th 2025 at 6:58 GMT by The Motley Fool
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I need to access the webpage. Let's try retrieving the content.Quantum Computing: The Next Frontier for Investors

The rapid advances in quantum technology are turning a long‑hoped‑for breakthrough into a tangible reality. In the latest analysis from The Motley Fool, the author maps out why quantum computing is becoming a hotbed for growth stocks, the companies leading the charge, the market’s projected scale, and how a retail investor can position themselves in this nascent field.

What is Quantum Computing and Why Does It Matter?

Quantum computers harness principles of quantum mechanics—superposition, entanglement, and tunneling—to process information in ways that classical machines simply cannot. While a traditional bit is either 0 or 1, a qubit can be in a superposition of both states simultaneously. When multiple qubits are entangled, the system can represent an astronomically large number of states with only a handful of physical components.

This computational power promises to solve problems that are infeasible today: breaking RSA encryption, discovering new drug molecules through precise molecular simulations, optimizing logistics for global supply chains, and accelerating machine‑learning training. The technology is still in its “noisy intermediate‑scale quantum” (NISQ) phase, but the trajectory is clear. Analysts project a quantum‑computing market worth $1.2 trillion by 2035, with applications spanning finance, defense, and biotech.

The Quantum Titans and Their Playbooks

IBM

IBM’s Quantum Experience platform is the industry standard for experimental quantum research. IBM’s “Quantum Volume” metric, a combined indicator of qubit count, error rate, and connectivity, has steadily climbed—from 32 in 2021 to over 1,000 today. IBM is aggressively scaling its Eagle architecture and has announced plans to commercialize quantum‑as‑a‑service offerings through its IBM Cloud. The company's 2025 guidance includes a $10‑$12 billion quantum‑computing revenue target, a dramatic leap from the $150 million in 2021.

Alphabet (Google)

Google’s Quantum AI lab famously achieved “quantum supremacy” in 2019 by performing a specific calculation in 200 seconds that would take a classical supercomputer 10,000 years. Google’s Sycamore processor is now operating at 54 qubits, and the company is actively collaborating with the U.S. Department of Energy on the “Quantum X” initiative, which aims to build a 1,000‑qubit system by 2030.

Intel

Intel is pursuing a multi‑pronged approach: the Tangle Lake silicon‑based qubit platform, the Quantum SDK for software developers, and strategic acquisitions of quantum startups. Intel’s 2024 revenue from quantum efforts was $600 million, with a projected growth to $4 billion by 2035, driven by the expansion of its Quintus QPU (Quantum Processing Unit).

Honeywell (NOW)

Honeywell’s quantum‑computing division, now part of Nexar, is building Trapped‑Ion QPUs that excel in low‑error rates and scalability. Honeywell’s stock is a favorite among investors who want a diversified industrial exposure to quantum technology.

D‑Wave Systems

D‑Wave’s quantum annealer is already deployed in cloud services like IBM Quantum and Microsoft Azure Quantum. The company’s unique architecture targets optimization problems rather than universal computation, providing a more immediately practical application.

Quantum‑Software Startups (Rigetti, IonQ, Xanadu)

These companies focus on software‑first strategies, offering quantum‑optimized algorithms and cloud platforms. IonQ’s ion‑trap QPUs have a 10‑qubit system that is publicly accessible via Amazon Braket. Rigetti’s Forest platform provides a seamless interface for Python developers. Xanadu’s Strawberry Fields library specializes in photonic quantum computing, which operates at room temperature—a major advantage for commercial deployment.

Investment Vehicles

1. Individual Stocks – Buying IBM, Alphabet, Intel, Honeywell, or D‑Wave directly offers the most exposure to core quantum hardware. Investors should scrutinize each company’s R&D spending, patent pipeline, and partnership ecosystem.

2. Quantum‑Focused ETFs – The ARK Q (ARKQ) ETF includes a curated list of quantum‑computing stocks and offers diversification across hardware, software, and ancillary technologies. The Global X Quantum Computing ETF (QUMT) tracks a broader set of quantum‑related companies, including semiconductor and software players.

3. Broad‑Market Tech ETFs – Indices such as the QQQ (NASDAQ‑100) already contain a substantial quantum footprint through Apple, Nvidia, and Microsoft, which are investing heavily in quantum‑resilient cryptography and quantum‑aware AI.

Risks and Caveats

• Technological Uncertainty – While quantum advantage is on the horizon, practical, error‑corrected systems remain years away. Investors must tolerate significant volatility.

• Capital Intensity – Quantum hardware demands expensive clean‑room facilities and high‑purity materials. The barrier to entry for new competitors is high.

• Regulatory and Security Concerns – Quantum computers could break current cryptographic standards, potentially accelerating government‑led “post‑quantum” initiatives that could either accelerate or slow adoption.

• Competition – The field is crowded. A single breakthrough (e.g., a more scalable ion‑trap design) could shift the competitive balance dramatically.

How to Position Yourself

1. Long‑Term Horizon – Quantum computing is a “big‑idea” investment. A 5‑ to 10‑year outlook is advisable to ride out early volatility.

2. Diversify – Combining a flagship quantum stock with a quantum‑focused ETF provides a balance between concentrated upside and broader risk mitigation.

3. Monitor R&D and Partnerships – Quarterly earnings reports, patent filings, and industry announcements (e.g., new collaborations with universities or defense agencies) are key indicators of progress.

4. Stay Informed – Following thought leaders such as Dr. Scott Aaronson, industry conferences (e.g., Q2B, Quantum Tech Summit), and open‑source initiatives (IBM Qiskit, Rigetti Forest) helps gauge where the technology is heading.

Bottom Line

Quantum computing is no longer a theoretical curiosity; it’s an evolving industrial sector with transformative potential. Companies like IBM, Alphabet, and Intel are turning quantum theory into commercial products, while software innovators are ensuring that future algorithms can harness the new hardware. For investors willing to navigate the uncertainties, the quantum frontier offers a compelling opportunity to participate in one of the most disruptive technological revolutions of the 21st century.