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An Introduction

Quantum computing stocks are generating a lot of interest because they represent the next frontier of computing technology, with the potential to revolutionize industries like finance, healthcare, cybersecurity, and artificial intelligence.

According to Precedence Research, the quantum computing (QC) industry is a rapidly evolving and expanding field that is expected to experience a compound annual growth rate (CAGR) of 36.9% between now and 2030. That being said, however, according to McKinsey’s estimation, operational quantum computers are only expected to reach about 5,000 by then but, when they do, they will change the world as we currently know it.
 

What Is Quantum Computing?

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 and that’s where QC comes in.
 

Classical Computing versus Quantum Computing

Classical computing:

• calculates with transistors;
• bits are either 0 or 1;
• bits are independent of each other; i.e., can represent 0 and 1 at the same time;
• each processor performs one operation at a time;
• power increases in a 1:1 in relationship to the number of transistors;
• have low error rates;
• can operate at room temperature.

As explained above, present day “classical” computers operate on a binary system that is equipped with chips that use bits to perform computations. These bits are limited, though, and can only show a value of zero or one, so it takes a lot of zeros and ones arranged in specific orders for a computer to do anything.

Quantum computing:

• qubits can be in multiple states at the same time called superposition;
• qubits may be in a combined with each other called entanglement;
• power increases exponentially in proportion to the number of qubits;
• quantum computers have high error rates and need to be kept ultra cold;
• can perform multiple operations at the same time

"Quantum" computers, however, operate with subatomic particles that use quantum bits (qubits) to allow the particles to exist simultaneously in more than one state dramatically increasing processing speeds – and quicker processing speeds mean that computers can tackle more complex problems, improving predictive analytics, pattern recognition and complex optimization tasks.  (Check out this video on Quantum Computing: 4 Things You Need to Know.)
 

Pure-Play Quantum Computing Stocks Portfolio: UP 60.3% in May; DOWN 2.3% YTD 

Only 4 companies are researching and developing quantum computers exclusive of anything else and below is how their stocks performed in May, in descending order, and YTD:

1. D-Wave Computing (QBTS): UP 136.3% in May; UP 94.4% YTD 
   • focuses on quantum annealing technology
2. Quantum Computing Inc. (QUBT): UP 68.1% in May; DOWN 31.5% YTD
   • developing photonic qubits that offer a number of key advantages over trapped ions or superconducting qubits.
3. IonQ (IONQ): UP 46.9% in May; DOWN 3.4% YTD 
   • planning to build a network of quantum computers accessible via the cloud using trapped-ion technology in its processing units which relies on suspending ions in space using electromagnetic fields, and transmitting information through the movement of those ions in a “shared trap”.
4. Rigetti Computing (RGTI): UP 36.5% in May; DOWN 20.5% YTD
   • specializes in superconducting qubit technology and has developed a suite of software tools and algorithms for programming and simulating quantum computations

What About Big Tech Hyperscalers?

While there are close to 200 companies whose primary focus is on QC Software, according to The Quantum Insider, just over 20 companies worldwide are working on QC Processors and Chips. In addition to the 4 publically traded pure-play quantum computing companies highlighted above  Nvidia, Alphabet, Microsoft, Amazon, IBM, Meta, and Honeywell (via Quantinuum) are making substantial investments in developing their own custom AI chips, such as TPUs, Trainium, Inferentia, MTIA, and Maia but they are not included in the Portfolio due to their non-exclusivity in the quantum computing sector:

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