The stock market has soared over the past year, and some of the companies that have gained the most are operating in a specific field: artificial intelligence (AI). This technology is expected to revolutionize many industries, from healthcare to automotive, with innovations such as AI-powered medical devices and self-driving systems. And thanks to tools like AI agents and AI-powered robots, AI is already helping businesses become more efficient.
But AI is not the only transformative technology. Another potentially game-changing field has recently gained attention: quantum computing. Many companies operate in this space, from small companies focused solely on this technology to technology giants with huge businesses.
Quantum computing, like AI, is generating excitement in the investment community because it has the potential to provide a huge boost to businesses in terms of innovation and efficiency. All of this is positive for revenue growth and stock price performance for quantum computing companies and their customers.
Therefore, getting early to the technology that drives this market is a great idea. Today, you can do that by investing in just one company. Here are my top quantum computing stocks to buy right now.
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What is quantum computing?
The first question you might ask is, “What exactly is quantum computing?” This technology is based on the principles of quantum mechanics, which explains how elementary particles move and interact in nature. Quantum computers use these ideas to calculate probabilities and solve complex problems that would take a classical computer much longer. Quantum computers take minutes, whereas classical computers take thousands of years.
This is possible because quantum computers do not operate in the same way as classical computers. Instead of using bits to store and process data, we use qubits. A bit can only store one value, 0 or 1. But qubits can store 0s, 1s, or a combination of both at the same time. This means that combining qubits scales exponentially, increasing processing speed. Scientists create qubits by measuring particles such as photons or electrons.
It is clear that this is a very complex process, and there is still a long way to go before quantum computers become a commonly used tool. Nvidia Its director, Jensen Huang, recently said at CES that “very useful” quantum computers are still about 20 years away.
Still, companies are making impressive strides in the technology, and investors are responding by piling into quantum computing stocks. for example, righetti computing and quantum computing The stock has soared more than 1,000% in the past year.
Profitable quantum player
Well, let's check out my favorite quantum computing stocks to buy right now. I think it's a great idea to buy shares in companies that are involved in quantum computing, given that this technology itself may remain in the development stage for quite some time, but currently generates revenue through other businesses. and generate profits.
This company is alphabet (GOOG 1.16%) (Google 1.13%). You're probably most familiar with it thanks to Google Search, the world's most popular search engine, and its entire Google platform. And ads across Google account for the bulk of Alphabet's $1 billion in revenue. Google also has a cloud computing division, Google Cloud, which has delivered double-digit revenue growth.
In addition to this, Alphabet has shown itself to be a potential leader in quantum computing. Last month, the company announced Willow, a quantum computing chip.
Willow gained market attention because it reached two major milestones. The chip showed that errors can be reduced exponentially as the system scales up using more qubits. This kind of scale-up has been a problem for quantum computing in general. increase error. And Willow solved a problem in less than 5 minutes that would take a classical computer 10 celillion years (i.e. a problem with 25 consecutive zeros).
The company's next step is to demonstrate the utility of quantum computing for real-world problems — and Alphabet says its Willow generation of chips could help with this task.
Multi-billion dollar market
That's why Alphabet today offers investors an opportunity to tap into the high-growth and promising field of quantum computing. According to Boston Consulting Group, this market could generate up to $850 billion in economic value by 2040. At the same time, investing in Alphabet provides the security of a profitable company that has already established itself as a technology leader.
And Alphabet stock currently looks very cheap, trading at 22 times forward earnings. All of this makes this tech giant my top quantum computing stock to buy now, and to hold until this explosive technology develops.
Alphabet executive Suzanne Frye is a member of The Motley Fool's board of directors. Adria Cimino has no position in any stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool has a disclosure policy.
