2 Quantum Computing Stocks That Could Supercharge Your Portfolio

By Investor Empires On Dec 23, 2024

Quantum computing stocks have emerged as one of the hottest investment topics for 2024, with… Defiance Quantum ETF (NASDAQ:KTOM) Up 49.4% year to date, nearly double the number Standard & Poor’s 500Strong gains of 24.3%. While large-scale commercial quantum computers could take years to develop, major technological breakthroughs have sparked an early rush toward what many see as the next computing revolution.

The excitement is not just speculative hype. Quantum computing It achieved two groundbreaking achievements in 2024, indicating that we are approaching a technological turning point.

Image source: Getty Images.

alphabet (NASDAQ:GOG) (Nasdaq:Google) History was made with the Willow quantum computing system, which demonstrated the ability to reduce errors while dramatically increasing the number of qubits. This breakthrough solves a challenge that has puzzled researchers for nearly 30 years. Even more impressive, Willow completed a record-breaking calculation in less than five minutes that would require today’s fastest supercomputers 10 septillion years to solve – a time span far greater than the age of the universe.

Meanwhile, quantum computing startup Infleqtion, working with… Nvidia (Nasdaq: NVDA)achieved another first by demonstrating a practical application of materials science using logical qubits. This achievement, which achieved a 6-fold increase in computational accuracy, indicates the potential of quantum computing to revolutionize everything from… Battery technology to superconductors.

While quantum computing is still in its infancy, these early breakthroughs, spurred by tech giants Alphabet and Nvidia, suggest we may be at the dawn of a computing revolution. There are two companies pioneering this transformative technology that could boost your investment portfolio in 2025 and beyond.

Pioneer of quantum computing with trapped ions Ion Q (NYSE: IONIC) It has emerged as one of the breakout quantum computing stocks of 2024. The company’s new approach uses ionized atoms as the heart of its quantum systems, enabling longer and more complex calculations with fewer errors than competing approaches. The IonQ platform integrates with all major cloud providers and supports multiple programming languages, making quantum computing highly accessible to developers and researchers.

The company’s competitive advantages come from deep academic roots in ion trap technology spanning more than 25 years of research and proven commercial traction through government and institutional partnerships. IonQ has also expanded into quantum networking, working at the intersection of quantum computing and the future quantum internet.

However, despite IonQ stock’s impressive 258.5% gain in 2024, the company remains unprofitable and faces significant technological and business risks. The quantum computing industry is still in its infancy, with uncertain timelines for achieving practical advantages over classical computers. Competition from technology giants and other emerging quantum companies and the potential for technological obsolescence represent major risks to IonQ’s position in the market.

While IonQ’s valuation may look steep after its impressive run in 2024, with shares trading at roughly 250 times trailing sales, the company’s growing commercial momentum, expanding quantum networking business, and strong balance sheet of $382.8 million at the end of last quarter, all… That puts it in the right place. is in pole position to capture a significant share of what could become a multi-trillion-dollar quantum computing market. For investors with a high risk tolerance and long-term horizon, IonQ offers pure exposure to one of the most promising frontiers in technology.

Pioneer of quantum computing It ignores computing (NASDAQ:RGTI) It takes a radically different approach to quantum computing than IonQ, using superconducting circuits instead of trapped ions. The company’s vertically integrated strategy includes Fab-1, the industry’s first dedicated quantum foundry, giving Rigetti control of the entire quantum chip development process. This in-house manufacturing capability allows for rapid innovation cycles and helps protect against supply chain risks.

The company’s latest Ankaa quantum processor architecture achieves 98% two-qubit gate accuracy, representing a major advance in quantum performance. Rigetti’s strategy places great emphasis on scalability by designing a modular chip that allows larger quantum systems to be built from smaller, identical components. The company has also built strong partnerships across government, research and commercial sectors.

However, like other quantum companies, Righetti faces significant technological hurdles and remains unprofitable. The stock’s 851.2% rise in 2024 and its valuation of 130 times sales suggest investors value significant future growth potential. However, with its integrated manufacturing approach, improving quantum performance metrics, and clear technology roadmap through 2025, Rigetti presents an interesting option for investors looking for exposure to superconducting quantum computing technology.

While tech giants like Alphabet and Nvidia have made great strides in quantum computing, their massive market capitalization means quantum breakthroughs are likely to have little impact on their stock prices. Pure quantum companies like IonQ and Rigetti offer more direct exposure to the technology’s potential, although they come with much higher risks. Each represents a different technological approach — trapped ions versus superconducting circuits — and both could emerge as winners in what could become a huge new computing market.

However, given quantum computing’s early stage and technical complexity, many investors may prefer a more diversified approach. The Defiance Quantum ETF offers just that, balancing pure quantum stocks with established technology leaders working to advance the technology. With quantum computing potentially approaching a tipping point, investors now have multiple ways to position themselves in what could become one of the most transformative technologies of our time.

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Susan Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. George Budwell He has positions at IonQ and Nvidia. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool has Disclosure policy.

2 Quantum Computing Stocks That Could Boost Your Portfolio Originally published by The Motley Fool