Quantum computing is an emerging field of computer science that leverages classical physics and mathematics. The field’s promise is simple: to increase the speed with which computers can do calculations. Thus, stocks in the field are highly attractive to investors in this increasingly digitized world.
The most important thing to understand here is the idea of qubits. Classical computers process information in bits, which are defined as zeros and ones. A qubit is essentially a quantum bit and can take on the properties of a zero or a one at different times.
Let’s look at three quantum computing stocks in the sector.
Quantum Computing (QUBT)
Quantum Computing (NASDAQ:QUBT) It continues to develop quantum computing technologies and is a relatively inexpensive and high-risk stock. Shares trade at around 90 cents but, based on analyst projections, have the potential to Increase to $9. It’s important to note that the sole analyst gave that $9 price target with the firm’s coverage.
The company is building what it refers to as quantum reservoir computers. The most important thing for investors is that those computers promise to bring quantum computing capabilities to fields including artificial intelligence. That means that the speed and efficiency of computing will increase while energy consumption will fall dramatically. This then makes QUBT one of those quantum computing stocks to consider.
So, theoretically, quantum computing makes a lot of sense for investors who hope to take advantage of the boom in artificial intelligence. However, practical, real-world limits need to be considered as well. primarily, I’m referring to financial results. The company is still very young and reported revenues of $50,000 during the third quarter. That led to a loss of $8.3 million.
IonQ (IONQ)
Although quantum computing continues to be a relatively young industry, IonQ (NYSE:IONQ) Has produced the sixth generation of quantum computers. The company has produced those six quantum computers since its inception in 2015. The company now believes that it is on a path that will lead to commercially scalable operations.
The company continues to concentrate on its trapped ion technology. briefly, that technology uses ions trapped in a vacuum chamber in which lasers are used to manipulate the state of the ions. This allows the ions to enter a quantum state, performing calculations quicker than In classical computing. This advantage makes IONQ one of those quantum computing stocks to consider.
IonQ benefits from substantial demand. The company initially aimed to achieve 100 million in cumulative bookings within the first 3 years of commercialization. CEO Peter Chapman reported that the company is on track to achieve that goal by the end of 2023. The company sold two such systems to the US Air Force research lab during the third quarter for $25.5 million.
However, the company could only recognize $6.1 million in revenue during the period due to the accounting for said bookings. That said, revenues increased by $122% in the third quarter.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) And most other Silicon Valley firms are also engaged in quantum computing development. Most of the major Tech firms continue to be strong Investments, and MSFT stock is no exception.
The company is engaged in quantum computing research, which shouldn’t surprise anyone. The company is actively seeking employees for multiple roles within quantum computing research. Microsoft intends to create a scalable quantum computing system.
I know very little about this particular area of research, but it’s clear that Microsoft is focused on solving the fault tolerance problem. fault tolerance refers to the ability to prevent minor errors from spreading rapidly. In quantum computing, when a qubit erroneously takes on the value of one or zero, that can lead to a situation that results in an uncorrectable error.
There is little evidence that Microsoft is ahead of any of the other Silicon Valley firms in this regard. However, the company remains strong overall and will remain an excellent investment.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.