Quantum computing promises to be one of the next big things in technology, and that has led many growth investors to get into the industry. But when we think about “the next big thing,” that doesn’t necessarily mean tomorrow or even a year or two from now. One thing that has kept some investors from getting into this high-potential technology is the idea that its usefulness may take many years or even decades.
Even experts haven’t always been sure when this exciting technology could become part of our daily lives. At the beginning of last year, NVIDIA Chief Jensen Huang said quantum computing was decades away from being very useful. A few months later, Huang said otherwise and even announced the creation of a quantum computing research center. AND microsoft (NASDAQ:MSFT) Co-founder Bill Gates said last year that the technology could be ready to solve big problems in three to five years.
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The reason quantum computing is taking a while to become very useful is due to the complexity of the technology. It involves using qubits for calculations instead of the bits used by classical computers, and qubits are fragile and often difficult to scale up. But there are reasons to be optimistic about the progress of certain companies. In fact, two quantum stocks are more advanced than anyone gives them credit for. Let’s take a look.
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1.Microsoft
You probably know Microsoft well from its software suite, which includes popular products like Word and Excel, and you might even be familiar with the company’s cloud computing business. These are important engines that drive years of revenue and profit growth, and this has also translated into returns for investors, with the stock up 700% over the last decade.
But while Microsoft is a well-established company that can be trusted, it is also exploring new technologies with the energy of a young company. In fact, great advances are being made in quantum computing that could reduce useful time. A little over a year ago, Microsoft introduced its Majorana 1 chip; The big news here is that it uses a type of material, topoconductor, that can lead to the production of more scalable and reliable qubits.
As Microsoft says, this architecture can address industrial-scale problems in just a few years. The company is on track to put a million qubits on a chip that fits in the palm of your hand.
In the meantime, Microsoft’s financial strength can support the investment needed to achieve this and related goals. All this makes Microsoft the ideal choice for an investor looking for security along with growth.
2.IonQ
IonQ (NYSE: IONQ) It is a company dedicated exclusively to quantum computing, so it represents more risk than a technology giant like Microsoft. Although the company generates revenue from its quantum systems, it is not yet operationally profitable and must continue to invest heavily in research and development. But this is pretty standard for a young company specializing in quantum computing.
This company reached a key milestone last year, and it is a record for the performance of quantum systems. IonQ delivered a two-qubit gate fidelity of 99.99%. What does this mean? IonQ addressed one of the biggest problems facing quantum computing today: error rate. “Two-qubit gate fidelity” is a measure of precision, and reaching almost 100% is a great achievement. So far, IonQ is the only quantum company to achieve this level of precision. IonQ says this puts it on track to reach millions of qubits by 2030, suggesting utility may be just around the corner.
IonQ is known for its technology of using atoms, transformed into trapped ions, as qubits; They offer several advantages, including the ability to interact with each other and the fact that they can maintain overlap for quite a long time.
Although the quantum computing timeline is not yet certain, IonQ may be further along than anyone thinks.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions and recommends IonQ, Microsoft and Nvidia. The Motley Fool has a disclosure policy.
2 Quantum Computing Stocks That Are More Advanced Than Anyone Gives Them Credit was originally published by The Motley Fool
