Quantum Computing Stocks Surge in September as Tech Giants Push Innovation
Quantum computing stocks have rebounded in September, following a largely stagnant summer. Alphabet's and Nvidia's advancements in the field have sparked renewed interest.
Alphabet, the parent company of Google, has been making significant strides in quantum computing. It recently unveiled the Willow quantum computing chip, demonstrating its commitment to the field. If successful, Alphabet's quantum computing efforts could significantly boost its profit margins, providing a potential boost to its stock price. However, even if these efforts fail, Alphabet's dominant digital ad business serves as a safety net.
Nvidia, a leading graphics processing unit (GPU) manufacturer, has also been making inroads into quantum computing. It has adapted its popular CUDA platform for quantum computing, securing its place in the trend. The company is also working on facilitating a hybrid computing approach that combines traditional and quantum computing methods. This could potentially revolutionize computing and provide a new revenue stream for Nvidia.
Investing in quantum computing involves high risk due to the uncertainty surrounding the commercial success of different approaches. However, a balanced approach could involve picking established tech players like Alphabet and Nvidia, along with pure plays like IonQ. IonQ, a high-risk, high-reward company, uses a unique trapped ion technology approach. Its quantum computers hold world records for one-qubit and two-qubit gate fidelity, offering potential advantages in accuracy. The company has also enhanced its patent portfolio and network through multiple strategic acquisitions.
Other companies to consider include QuEra Computing, which focuses on scalable neutral-atom quantum computers, and PsiQuantum, which pursues a photonic qubit approach leveraging semiconductor manufacturing. A diversified portfolio covering leading architectures and strong partnerships could potentially outperform the market within five years.
Quantum computing stocks are gaining momentum again, driven by advancements from tech giants like Alphabet and Nvidia. While the field is risky, a balanced portfolio of established tech players and pure plays like IonQ, QuEra Computing, and PsiQuantum could provide significant returns in the long run.
