One of the most daring and lucrative strategies for an investor is betting on a transformative new technology before it is widely appreciated or understood. Think about the iPhone in 2009…cryptocurrency in 2017…and artificial intelligence in 2020.
Latest opportunity: Quantum computing, which harnesses the principles of quantum physics—the study of matter and energy at the atomic and subatomic level—to tackle problems that are out of reach even for today’s supercomputers. Imagine a computer millions of times more powerful than the most advanced technology now, capable of discovering life-saving drugs and hacking the most classified digital encryption.
It sounds like science fiction, admits investment expert Sylvia Jablonski, but quantum companies are at an inflection point now, moving from the speculative to the commercial. The market opportunity is staggering—the global quantum computing market is projected to reach $65 billion by 2030 and surge to $850 billion by 2040. Quantum firms are already attracting major investments from the federal government and Big Tech seeking to capitalize on the potential.
Bottom Line Personal asked Sylvia Jablonski to explain why there is so much excitement over this obscure technology…why it is so powerful…and how you can capitalize on quantum computing stocks before the rest of the investment world catches on.
WHAT IS QUANTUM COMPUTING?
Time to dust off your old high school physics textbook.
Scientists have known for more than a century that in the microscopic—or quantum—world, particles, energy and matter can behave very differently than in the larger visible world and often in strange ways that defy common sense. But they’ve only recently been able to build workable computers in labs that harness quantum powers.
Traditional computers such as your laptop or smartphone operate with silicon semiconductor chips made by companies like Intel and Nvidia. The chip acts like an intricate network of light switches that control the flow of electrical signals. Everything you see on a screen, from e-mails to movies, is built on these bits of information either in the “0” position (no electrical pulse) or the “1” position (an electrical pulse). Traditional computers process these binary digits one at a time in rapid-fire combinations to perform calculations, store data and create letters, numbers and images.
A quantum computer typically replaces computer chips with electrons, trapped ions or photons and uses their unique quantum properties to create an entire processor. Under certain conditions, these subatomic particles can behave like two separate objects at the same time (think of how a spinning coin can be both heads and tails until it lands). This is known as a qubit of information. Qubits function more like dimmer switches than light switches—they can be off (0) or on (1) or somewhere in between, representing a combination of both states.
Exploiting this strange phenomenon allows a quantum computer to explore multiple computational paths simultaneously, which helps generate its revolutionary speed and power.
The challenge: Quantum computers must overcome several problems in the next few years to be more commercially viable. For starters, qubits are extremely sensitive to their surroundings. Even the slightest disturbances such as heat or vibration can destabilize them and cause errors. A typical quantum computer has to be operated in a cryogenic chamber cooled to near absolute zero (–459.67°F).
WHY QUANTUM COMPUTING WILL CHANGE THE WORLD
Quantum computers excel at “optimization tasks,” the process of finding the best possible solution to problems with millions of potential outcomes. Highly complex problems that could take existing supercomputers weeks or months could be solved in minutes even seconds, using a quantum computer, making the technology especially valuable to institutions, governments and large corporations that need to process mountains of data in real-time. Examples of industries where quantum computing is a game-changer…
Logistics
Quantum technology will help wireless phone companies reduce congestion during high-call volume periods. It will allow global delivery companies to coordinate the most efficient routes for massive fleets of vehicles in real-time, taking into account hundreds of factors including weather, traffic, fuel and delivery windows.
Defense and national security
Quantum computers will be able to crack today’s standard encryption used for Internet security, as well as the AES-256 encryption used by the military and major banks. They also can be used to develop new quantum-resistant passcodes. That’s a major reason why the US government has invested billions of dollars in quantum computing.
Drug discovery
Pharmaceutical companies and biotech firms will precisely simulate molecular interactions and identify promising compounds or catalysts much faster and with higher accuracy for treatment of diseases such as cancer and Alzheimer’s. They also will be able to model how specific drugs interact with a person’s unique biology, leading to customized treatments based on an individual’s DNA or personal body chemistry.
Artificial intelligence
Transformative leaps in computational power will redefine the scale and speed of AI training to help machines and robots learn everything from image recognition to language processing to decision-making.
HOW TO INVEST IN QUANTUM COMPUTING STOCKS
Bet on pure-play quantum stocks
They are for aggressive investors only and should occupy a very small percentage of your portfolio. Their stock prices tend to soar or plunge on even small developments and setbacks.
Focus on catalysts instead of traditional financial metrics
Pure plays have relatively small revenues and no profits, so you must pay attention to cash on the balance sheet (how quickly the company is burning through available cash for research and production)…partnership deals with major companies, which provides validation and potential revenue paths….breakthrough technology announcements and research milestones…and government contracts.
Three promising pure-play quantum stocks to consider now…
D-Wave Quantum (QBTS) is one the smaller of the major quantum firms but the first to start serving major paying customers including MasterCard, Volkswagen, accounting giant Deloitte and Japan’s largest wireless carrier NTT DOCOMO. D-Wave uses subzero temperatures to create qubits but specializes in quantum “annealing.” It’s easier-to-achieve computation method doesn’t guarantee the absolute best solution to a problem every time, but it does produce a set of good potential solutions. Recent share price: $18.06.*
IonQ (IONQ), the largest quantum computing company with an $11 billion market cap, has the strongest path to commercialization. The company utilizes a different kind of technology that avoids subzero temperatures to create qubits. Instead, lasers are used to manipulate ions (charged atoms) to perform quantum operations, and the ions are isolated in a vacuum to maintain their fragile states. This trapped-ion method runs at room temperature. IONQ has deals with Amazon, Microsoft and Google to use their cloud platforms for its technology…and it has struck partnerships with everyone from drugmaker AstraZeneca to the US Air Force Research Lab to the University of Maryland at College Park, where it’s building a billion-dollar campus. Recent share price: $31.90.
Rigetti Computing (RGTI) designs and builds quantum computers using tiny electrical circuits made from superconducting materials at its fabrication foundry near Silicon Valley. The firm has partnered to develop systems for the US Department of Defense, as well as Moody’s and Standard Chartered Bank. Recent share price: $15.92.
Invest in established Big Tech firms with quantum divisions if you want some exposure but safer plays. Should the quantum market live up to the hype, it could move the needle for the stock prices of these multitrillion dollar giants. But if quantum takes longer to play out, Big Tech’s core businesses still will continue to generate massive profits. Two tech behemoths with quantum exposure now….
Alphabet (GOOG). At the end of 2024, the parent company of Google unveiled an experimental quantum chip named Willow that performed a computation in under five minutes that would have taken one of today’s fastest supercomputers millions of years to solve. Recent share price: $314.90.
IBM (IBM) actually has been a quantum pioneer for decades thanks to its robust research and hardware development. It has also collaborated with the financial-services giants HSBC and Vanguard to use quantum computing to optimize bond trading and improve investment-portfolio construction for investors. Recent share price: $257.16.
*Recent share prices are as of February 23, 2026.
