While tech giants pour billions into quantum computing research, specialist companies dedicated exclusively to quantum technology offer investors higher-risk, higher-reward opportunities. These pure-play quantum stocks provide undiluted exposure to quantum computing’s revolutionary potential. The quantum computing race features not just titans with deep pockets, but nimble innovators pioneering alternative technical approaches that could leapfrog established players.
What’s the investment opportunity? Quantum computing represents a rare ground-floor opportunity in a technology with transformative potential across industries.
Unlike incremental advances in classical computing, quantum computing’s fundamentally different approach promises exponential performance leaps for previously unsolvable problems in drug discovery, materials science, logistics, and financial modeling. This paradigm shift could create entirely new markets while disrupting existing ones, potentially rewarding shareholders with returns reminiscent of early semiconductor or internet pioneers.
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According to Fortune Business Insights, the quantum computing market is in its nascent stages but expanding rapidly, with projections showing growth from approximately $1 billion in 2024 to over $12 billion by 2032. These two quantum specialists represent compelling buys for investors seeking significant upside potential in an emerging field.
The pure-play quantum leader
IonQ, Inc. (IONQ -3.78%) specializes in trapped-ion quantum computing, a technology that uses charged atoms suspended in electromagnetic fields as qubits. This approach offers superior coherence times and fidelity, compared to competing superconducting quantum methods, potentially allowing for more complex calculations with fewer error corrections. This is a critical advantage in the race to a functional quantum computer.
IonQ’s stock presents an intriguing speculative opportunity, with shares trading 40% below their 52-week high. The pullback creates a potential entry point for risk-tolerant investors as the company executes on its ambitious quantum computing roadmap. While the company has formed strategic partnerships with the major cloud providers to make its systems more accessible, like most early stage quantum companies, it continues to operate with significant quarterly losses.
What’s the bottom line? IonQ represents a high-risk, high-reward proposition in the quantum computing space.
While the company has demonstrated rapid technological progress in trapped-ion quantum computing, prospective investors should bear in mind that this technology is unlikely to pull in significant revenue (billions) for an extended period. Thus, this quantum stock is best suited for those with a long-term mindset. Still, as a potential leader in the space, IonQ may indeed be worth the patience.
The quantum player already serving real businesses
D-Wave Quantum (QBTS -7.90%) is quietly carving out a unique niche in the quantum computing race, and the market may be underestimating its progress. With shares currently trading roughly 30% below their 52-week high, the stock offers a tactical entry point for investors looking beyond speculative tech and into practical quantum applications.
While most quantum companies are fixated on developing gate-based systems that remain years — if not decades — away from widespread commercial use, D-Wave is taking a different route. Its quantum annealing technology is already solving complex optimization problems for over 100 commercial customers. From logistics and scheduling to financial modeling and machine learning, D-Wave’s quantum annealing platform is being deployed across real industries today.
To be clear, D-Wave still faces uphill challenges. The company competes against better-funded rivals and will need additional capital to scale its infrastructure and product offerings. But what it lacks in size, it makes up for in focus. By concentrating on a specialized form of quantum computing that delivers immediate business value, D-Wave has created a viable path to substantial revenue growth in the years ahead.
For investors who want exposure to quantum computing at a practical level, D-Wave stands out. If it can continue expanding its customer base while executing on its roadmap, this under-the-radar player could become one of the quantum computing industry’s first breakout commercial successes.
George Budwell has positions in D-Wave Quantum and IonQ. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.