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An Introduction

This article provides an explanation as to what quantum computing is all about, its merits, and how the sector's only pure-play companies are performing.
 

What is Quantum Computing?

As explained by Mark Johnson, quantum computing uses the principles of quantum mechanics to process data in a fundamentally different way than traditional computers. Rather than using bits (with 0s and 1s), a quantum computer uses quantum bits, or qubits, which can represent both 0 and 1 simultaneously. This phenomenon is possible thanks to a physics property called superposition.

The better the computing power, and the more data, the better a semiconductor will perform and, as such, the race is on for companies to radically upgrade the computing power of their models. That's where "quantum computing" comes in. Check out this video on Quantum Computing: 4 Things You Need to Know.
 

What Is A Pure Play Company?

A pure-play company concentrates all its efforts on a single line of business, and in this context, it’s quantum computing. Notably, those companies that are highly diversified, i.e., do not generate at least 50% of their sales from quantum computing products and services, such as *(Microsoft  (MSFT), Nvidia (NVDA),  Alphabet  (GOOGL), Amazon (AMZN), Advanced Micro Devices (AMD), IBM, Intel (INTC), Honeywell Int'l (HON), Baidu (BIDU) and Micron Technology (MU) are excluded from this analysis.
 

 munKNEE's Pure-Play Quantum Computing Stocks Portfolio

Below are how the 4 stocks in the Portfolio performed last week, in descending order, along with a description of their business focus.

1. Rigetti Computing (RGTI): DOWN 3.0% last week
   • specializes in superconducting qubit technology and has developed a suite of software tools and algorithms for programming and simulating quantum computations
   • Market Capitalization: $164M
2. Quantum Computing (QUBT): DOWN 10.3% last week
   • developing photonic qubits that offer a number of key advantages over trapped ions or superconducting qubits
   • Market Capitalization: $53M
3. D-Wave Quantum (QBTS): DOWN 11.1% last week
   • focuses on quantum annealing technology
   • Market Capitalization: $202M
4. IonQ (IONQ): DOWN 12.0% last week
   • planning to build a network of quantum computers accessible via the cloud.
   • Market Capitalization: $1,430M

Summary

On average, the above 4 pure-play QC stocks were DOWN 9.5% last week, and are now DOWN 15.9% MTD and DOWN 31.5% YTD.

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