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Investing in Quantum Computing: A 2025 Snapshot of Three Promising Stocks

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  Published in Stocks and Investing on Sunday, December 21st 2025 at 11:52 GMT by The Motley Fool

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Investing in Quantum Computing: A 2025 Snapshot of Three Promising Stocks

Quantum computing is the technology that could, in theory, solve problems that are currently intractable for even the most powerful super‑computers. By exploiting phenomena such as superposition, entanglement, and tunneling, quantum machines can process a vast number of possible solutions simultaneously. This means that in the future we might see breakthroughs in cryptography, materials science, drug discovery, and complex optimization problems that impact logistics, finance, and energy. However, the industry remains in its infancy—quantum processors are still delicate, error‑rates are high, and the economic path to practical devices is unclear. The Motley Fool article “Want to invest in quantum computing? 3 stocks to buy” tackles this uncertainty head‑on, breaking the topic into three clear segments: why quantum matters, what the major players are, and how to weigh the risk versus reward for investors.

1. Why Quantum Computing Should Be on Your Radar

The piece opens by contrasting the current state of classical computing (the transistor‑based chips that dominate our laptops, phones, and data centers) with the emerging quantum paradigm. While Moore’s Law has slowed, the possibility of quantum advantage—where a quantum computer can outperform classical systems on certain tasks—offers a compelling long‑term narrative. The article points out that major tech firms are already investing billions in quantum research and that governments worldwide are pledging funding, signaling a macro‑trend that could shape the next decade of technology.

It also candidly notes the hurdles: quantum hardware is fragile, requires cryogenic temperatures, and suffers from decoherence. Even if breakthroughs arrive, the “software ecosystem” and talent pipeline lag behind. These practical challenges mean that any quantum‑focused investment is a long‑term play—one that may need to weather periods of under‑performance before the technology matures.

2. The Three Stocks: IBM, Honeywell, and Intel

The core of the article is a concise analysis of three publicly traded companies that are heavily involved in quantum computing. Each is chosen for a different reason—market position, innovation pipeline, and balance of risk and upside.

IBM is the most obvious choice, given its decade‑long public presence in the quantum arena and its well‑established Qiskit community. The company’s quantum hardware and cloud services already generate recurring revenue, and analysts project a modest but steady increase as the quantum ecosystem matures.

Honeywell is a newer entrant but benefits from a focused quantum division and a business model that leverages its broader industrial and aerospace expertise. HQS’s partnership with major cloud providers (Amazon Braket, Microsoft Azure) gives it immediate market reach, while the company’s own R&D pipeline—particularly trapped‑ion technology—positions it as a high‑growth, albeit higher‑risk, play.

Intel is less flashy in terms of current quantum revenue, but its core competence in silicon fabrication gives it a plausible pathway to integrate quantum processors with classical systems. The company’s collaboration with startup Quantum Motion to build scalable spin‑qubit arrays is a key highlight. For investors who want the safety of a blue‑chip with a quantum bet, Intel offers that balance.

3. What the Numbers Say

The article pulls together a few key financial metrics that illustrate the potential upside and the risk profile of each stock:

• IBM: Revenue from quantum services is still a tiny fraction (~1–2%) of total sales, but it’s growing at ~20% YoY. The company’s P/E ratio is around 15‑18, making it relatively cheap for a tech leader. Analysts foresee a 5‑10% upside over the next 5 years if quantum services expand.

• Honeywell: Quantum‑related revenue is under 0.5% of total sales, but it’s accelerating at >30% YoY. The company’s enterprise valuation is in the 30‑35 range, indicating room for growth. However, the stock’s beta is high, and its earnings can be volatile due to the small base of quantum revenue.

• Intel: Quantum research spend is roughly 0.3% of total R&D, but Intel’s large cash reserves allow it to maintain a steady investment pipeline. Its stock has a P/E of ~20, and the company’s beta is moderate. The upside is more conservative compared to Honeywell but supported by Intel’s broad market moat.

4. Risks and How to Mitigate Them

The article emphasizes three primary risk categories:

1. Technology Risk – Quantum hardware still has high error rates, and it is uncertain when or if a commercial quantum advantage will materialize. Mitigation: Choose a mix of companies with diverse approaches (hardware, software, ecosystem) so that failure of one technology does not wipe out the entire exposure.

2. Market Adoption Risk – Even if quantum computers become viable, the speed at which industry sectors (finance, pharmaceuticals, logistics) adopt them will determine the financial upside. Mitigation: Invest in companies that also have strong traditional business lines (IBM’s enterprise services, Intel’s CPUs, Honeywell’s aerospace contracts) so that the portfolio remains resilient if quantum adoption lags.

3. Competitive Risk – Startups such as IonQ, Rigetti, and QCI are aggressively pursuing quantum hardware, and larger tech firms could pivot to their own quantum strategies at any time. Mitigation: Keep a small quantum exposure (10–15% of a technology‑heavy portfolio) and re‑balance periodically.

5. Bottom Line: A Long‑Term, Diversified Bet

The Motley Fool article concludes that quantum computing is a “late‑stage frontier” technology, meaning it is not yet a mainstream commodity but holds the potential for significant upside in the 10‑20 year horizon. By allocating a modest portion of a diversified portfolio to one or more of the three companies highlighted—IBM, Honeywell, and Intel—investors can gain exposure to the quantum race without overcommitting. The recommended strategy is to:

1. Start small – 5–10% of a tech‑heavy portfolio, or a few thousand dollars in a quantum‑focused ETF if available.
2. Monitor – Watch quarterly earnings for quantum‑related revenue and press releases for breakthroughs.
3. Re‑balance – Shift focus toward the company that demonstrates the strongest execution or technological lead over time.

In essence, the article encourages a patient, research‑driven approach to quantum investing: understand the science, keep an eye on financials, and stay disciplined amid a field that is still maturing. If you’re willing to wait for the quantum advantage to materialize, investing in IBM, Honeywell, and Intel now could pay dividends when the next wave of computational power hits the market.