Preeminent Quantum Computing Shares to Invest in by 2025
Investing in quantum computing stocks can be a fascinating venture, and there's an array of options at your disposal. I'm not here to sing the praises of microcap quantum experts that have skyrocketed in recent times. They come with a level of risk that's not quite my cup of tea, and their gains seem to stem from unrealistic expectations.
But fear not! There are far better choices out there. You should consider giving IBM and Alphabet a serious look.
too risky for my taste, and their big gains seem to be based on unrealistic expectations.
Why not try your luck with IBM (IBM -0.31%) and Alphabet (GOOG 1.18%) (GOOGL 1.06%) instead?
IBM
This strategy allows you to join forces with industry-leading quantum computing expertise and sturdy business models, all while keeping your wallet comfortably lined. What's not to love about this safer approach to this exhilarating tech market?
GOOG
Google's quantum computer is shaking up the quantum scene
GOOGL
You've likely heard about Alphabet's quantum computing research. After all, its Google Quantum AI group played a significant role in the recent quantum computing boom.
Perhaps you missed it. In brief, Google's quantum computing researchers developed a new chip named Willow. This bad boy introduced a more efficient error correction process, making it quite the revelation in the error-plagued real world. As a result, Willow blazed through an industry-standard quantum computing test at record speed. A top-notch digital supercomputer would take countless lifetimes to accomplish the same feat, according to the quantum AI team's estimations.
developed a new chip called Willow. This processor introduced a more effective error correction process, which made it more effective in the error-flooded real world. As a result, Willow completed an industry-standard quantum computing test (which essentially boils down to "prove that you can do some really basic quantum computing") at a record speed. A world-class digital supercomputer would spend several times the lifetime of the universe to accomplish the same thing, according to the quantum AI team's estimates.
And the fun really started. Quantum computing's pure-play experts saw their stock prices soar as investors chased after the game-changing promise of "the next big thing."
the "Magnificent 7" group in many ways.
Again, it's worth noting that none of the skyrocketing quantum computing experts actually did the groundbreaking work that sparked this boom. That honor goes to Google, a deep-pocketed tech titan with over a decade of research experience and countless patents in the field.
free cash flows. IBM is a cash machine, and its artificial intelligence (AI) business is starting to raise a buzz.
It's no secret that Alphabet's quantum computing research is just a small piece of the company's massive business puzzle. With $350 billion in revenues last year and $95.7 billion in cash on hand, the deep-pocketed giant can afford to fund this research effort — even if some costly mistakes and development projects arise.
first-mover advantage. I can't guarantee that IBM will be that market-defining early leader, but it's encouraging to see that the company is working toward that exact goal.
And let's be real, the stock seems undervalued at the moment. Alphabet's Class A shares (with voting rights) are trading at a humble 23.2 times trailing earnings and 6.5 times sales. It's hard to find a cheaper stock in the "Magnificent 7" group.
quantum computing, I highly recommend taking a look at IBM and Alphabet. They are not the only current tech titans with a finger on the pulse of this promising market, but their combination of established leadership and affordable stocks makes them hard to beat in 2025.
IBM's quiet quantum crusade
If IBM were a member of the "Magnificent 7" club, it would be fighting Alphabet for that valuation title. As of now, Big Blue's stock is trading at 3.8 times sales and 39 times earnings. It's a cash cow, and its artificial intelligence (AI) business is starting to create some buzz.
At the same time, IBM is another formidable developer of quantum computing technology. It holds more quantum computing patents than Alphabet in the United States. The research covers a wide range of quantum computing topics, with a particular focus on making quantum computing useful for the real world.
And that's truly the goal, isn't it? Whoever manages to create a commercially viable quantum computing system will reap a massive number of orders in the early days of this era. Other competitors might struggle to catch up due to the resulting first-mover advantage. I can't guarantee that IBM will claim the title of market-defining early leader, but it's certainly working towards that goal.
In conclusion, if you're on the hunt for long-term investment ideas in the quantum computing world, give IBM and Alphabet a serious look. They may not be the only tech titans with a finger on the pulse of this promising market, but their blend of established leadership and attractive stock prices makes them tough to beat in 2025.
- For those interested in investing in quantum computing stocks, the author suggests considering companies like IBM and Alphabet, as they offer a safer approach with industry-leading expertise and robust business models. [href]
- The author points out that Google's quantum computer research, led by its Google Quantum AI group, has played a significant role in the recent quantum computing boom. [show_benchmark_compare]
- The development of Google's new chip named Willow by its quantum computing researchers has introduced a more efficient error correction process, making it a significant breakthrough in the industry-standard quantum computing test. [surprising]
- Despite the hype and soaring stock prices of some quantum computing experts, the author highlights that Alphabet's Class A shares (GOOGL) are relatively undervalued, with a humble 6.5 times sales ratio. [in_line_article_pitch]