Four Notable Stocks to Monitor in the Quantum Computing Revolution's Development
With the record-breaking year in the stock market in 2024, seeing the S&P 500 index return an impressive 23%, investors are optimistic about the bull market delivering further gains in 2025. The resilient economic backdrop and strong corporate earnings have led to a major investing theme: artificial intelligence (AI). This technology has already proven its ability to reshape various industries, and recent breakthroughs in quantum computing have brought this cutting-edge technology into the realm of real-world commercial applications.
As AI evolves, quantum computing may be the key to unlocking the full potential of the next generation of breakthroughs, with concepts like artificial general intelligence (AGI) on the horizon. This is a significant long-term growth opportunity for innovative companies in these fields. Here are 4 AI stocks to watch in the quantum computing revolution:
- Alphabet (GOOGL 0.82%)
Alphabet has dominated internet advertising with its market-leading platforms like Google Search, Chrome, Android, and YouTube. This diversified ecosystem makes its stock a potential compelling investment, and the company's AI and machine learning tools have captured strong demand from customers seeking to integrate AI into their applications and workflows.
In 2024, Alphabet announced its Willow quantum processor achieved "quantum supremacy" in specific tasks, performing highly complex optimization, simulation, and machine learning calculations beyond the capabilities of classical supercomputers.
- International Business Machines (IBM 0.47%)
IBM has posted robust growth with its comprehensive approach to AI, spanning infrastructure hardware, hybrid-cloud solutions, and a suite of enterprise software applications. IBM's Watsonx.ai platform has been pivotal in helping large organizations integrate generative AI and machine learning into their business processes.
IBM is also investing in quantum computing, with its Condor processor boasting 1,121 superconducting qubits, among the world's largest. The company offers the Qiskit open source software development kit, enabling clients to experiment with quantum computing at the circuit level.
- D-Wave Quantum (QBTS 8.28%)
D-Wave is a pure-play on quantum computing, focusing on quantum annealing. With more than 130 commercial, research, and government customers, D-Wave's cloud-based quantum computing as-a-service offering has seen strong demand, helping shares rise by more than 380% in the past year.
- IonQ (IONQ 0.59%)
IonQ specializes in trapped-ion quantum computing, recognized for its inherently lower error rates, which could be ideal for future AI applications where precision is key. The company's Forte and Tempo systems are designed to integrate into standard data center infrastructure, and it has seen even stronger growth, with revenue up 102% in its last reported third quarter. High-profile customers like AstraZeneca and Goldman Sachs illustrate the company's early commercial momentum.
Investing in AI and quantum computing stocks for long-term growth in 2025 requires careful consideration of emerging trends and the specific strengths of each company. Innovative companies will remain at the industry forefront as the intersection of AI and quantum computing drives new opportunities for growth.
In light of the anticipated bull market continuation in 2025, investors may consider leveraging their finance by investing in companies involved in artificial intelligence and quantum computing. Alphabet's 2024 achievement of "quantum supremacy" with the Willow quantum processor could potentially lead to significant returns. IBM, on the other hand, with its vast investments in quantum computing and AI technologies, is another promising option. Looking beyond established players, D-Wave Quantum, a company focused on quantum annealing, has seen impressive growth in its cloud-based quantum computing services in recent years. Lastly, IonQ, specializing in trapped-ion quantum computing, has also demonstrated promising revenue growth and attracted high-profile clients, making it an intriguing investment prospect for 2025.
