What Is Quantum Computing? Introduce Some Quantum Computing Stocks and Recommend the Best Quantum Computing Stocks
TradingKey - In October 2025, the quantum computing industry experienced several exciting developments. Google achieved verifiable quantum supremacy on its quantum chip, Willow; IonQ attained over 99.99% fidelity in two-qubit gates; and NVIDIA CEO Jensen Huang unveiled the NVQLink architecture, designed to connect quantum processors (QPU) with existing GPUs, thereby accelerating hybrid quantum-classical computing.
These advancements have made quantum computing stocks increasingly attractive. While the technology is still far from widespread commercialization, its potential to revolutionize the computing industry makes it a compelling investment.
According to TradingKey, the stocks of IONQ, Google (GOOG), and Microsoft (MSFT) are particularly promising. This article will provide an overview of the quantum computing industry, introduce relevant companies, and analyze individual stocks based on investors' different needs.
What is Quantum Computing?
Quantum computing utilizes quantum mechanics to perform calculations. Unlike traditional computers that use bits, represented by 0s and 1s, quantum computers use "qubits," which can exist in a state of superposition, being both 0 and 1 simultaneously.
When multiple qubits become entangled, computational power increases exponentially. This means, while traditional computers may explore every path sequentially to find an exit, quantum computers navigate all paths simultaneously to arrive at a solution instantly.
Quantum Computing Technologies
There are four main quantum technology approaches: Trapped-Ion, Superconducting, Photonic, and Quantum Annealing.
Ion Trap / Trapped-Ion | Utilizes cooled ions as qubits, offering high stability and excellent precision; IonQ employs this technology. |
Superconducting | Offers high speed but with higher error rates; pioneered by IBM, Google, and Rigetti. |
Photonic | Theoretically scalable but remains in the experimental phase; adopted by PsiQuantum and Xanadu. |
Quantum Annealing | Best suited for specific optimization problems; used by D-Wave. |
Quantum Computing Stocks Overview
Companies involved in quantum computing can be classified into tech giants and startups. Generally, tech giants have robust supporting businesses and larger market capitalizations, offering more resilience to risks but potentially smaller returns. In contrast, startups often carry high-risk, high-reward characteristics.
Tech Giants
Not among the four mainstream technical approaches due to its early research stage
Company | Supporting Business | Technical Approach | Quantum Computing Operations | Key Quantum Contributions |
Google Advertising: Primary profit driver Google Cloud: Key growth engine | Superconducting Qubits | ① Established Google Quantum AI Lab in 2013 ② Google Quantum AI is the core unit, focusing on hardware, software, and algorithm development | In October 2025, its self-developed Willow chip, using the "Quantum Echoes" algorithm, achieved "verifiable quantum advantage" | |
IBM | Software: the Largest revenue source | Superconducting Qubits | ① One of the earliest companies to enter quantum computing ② IBM Quantum focuses on developing hardware and software for general-purpose quantum computing and building its cloud platform (IBM Cloud) | ① Developed a 3-qubit quantum computer in 1999, launched the world's first commercial quantum computer, Q System One, in 2019 ② First to offer quantum cloud services, release electronic design automation tools for quantum computers, and propose metrics for quantum computing speed |
Amazon | Amazon Web Services (AWS): Primary profit driver and growth engine | Hardware agnostic, does not manufacture general-purpose quantum computing hardware | ① AWS established its Quantum Computing Center in 2021 ② Focuses on providing cloud access and R&D collaborations ③ Main business is the Amazon Braket cloud service platform, allowing users to build, test, and run quantum algorithms | ① AWS released its Ocelot quantum computing chip in early 2025, integrating "cat qubits" and quantum error correction components to reduce the cost of implementing quantum error correction by up to 90% ② Amazon Braket provides clients with interfaces to access quantum hardware across different technical approaches |
Microsoft | Azure Cloud Platform: Fastest growing, highest profit margin | Topological Quantum Computing | ① Microsoft's Azure Quantum is an open, full-stack quantum computing cloud service platform and its primary channel for quantum computing commercialization. Similar to Amazon Braket, it provides cloud-based access to various external quantum hardware ② Has a dedicated hardware development division, Microsoft Quantum | ① Launched Majorana 1 in 2025, the world's first quantum chip based on the new "Topological Core" architecture, offering stronger resistance to environmental interference ② Achieved significant progress in quantum error correction, setting records in reliable logical qubit count; developed a "qubit-virtualization system" capable of diagnosis and error correction ③ Developed the Q# programming language and the open-source Quantum Development Kit (QDK), simplifying the creation of quantum algorithms |
In addition to the aforementioned companies, NVIDIA holds a significant role in the quantum computing field, despite not engaging in research on qubit technology or developing quantum processing units (QPUs). NVIDIA's contributions to the industry are crucial due to the following:
1. NVIDIA provides powerful graphics processors (GPUs) and supercomputing platforms, essential infrastructure for controlling and calibrating QPUs, simulating quantum systems when QPUs are scarce, accelerating the classical components of hybrid quantum-classical algorithms, and performing quantum error correction.
2. NVIDIA has developed CUDA-Q, a software development platform that allows quantum computing companies to conduct rapid simulations on high-performance GPUs, thereby shortening development cycles and facilitating a quicker transition to commercialization.
3. Through its venture capital arm, NVentures, NVIDIA has invested in several companies within the quantum computing sector that pursue different technological approaches, including Quantinuum (trapped-ion technology), QuEra (neutral atom technology), and PsiQuantum (photonic quantum computing).
Startups
Company | Ticker | Technical Approach | Key Achievements |
Rigetti Computing, Inc. | RGTI | Superconducting Qubits | Operates a wafer fabrication facility (Fab-1), the industry's first dedicated quantum foundry, and has partnered with AWS and Azure cloud platforms. |
D-Wave Quantum Inc. | QBTS | Quantum Annealing | Developed end-to-end quantum annealing computer solutions, one of the few companies that can actually ship hardware. |
IonQ, Inc. | IONQ | Trapped-Ion | The only company providing access to its quantum computers via AWS Braket, Azure Quantum, and Google Cloud, the three major cloud platforms. |
Quantinuum | Private | Trapped-Ion | Formed by the merger of Honeywell's quantum computing division and Cambridge Quantum Computing, with plans for an IPO around 2027; has partnered with Nvidia to accelerate hybrid quantum-classical computing. |
Arqit Quantum, Inc. | ARQQ | Quantum Cryptography | Primarily focuses on quantum cryptography and cybersecurity software. Does not manufacture hardware, provide computing power, or fabrication facilities; offers a cloud-based quantum-safe cryptographic key distribution service. |
Quantum Computing Inc. | QUBT | Photonic | Product portfolio primarily revolves around software and services; its Qatalyst platform aims to democratize quantum and hybrid computing. |
Which Quantum Computing Stock is the Best?
Given the early stage of quantum computing technology development and the inherent uncertainties, companies in this field present high-risk investment opportunities. Investors should not rely solely on traditional financial metrics to assess a company's strengths and weaknesses. Instead, they should consider technological prospects, commercialization progress, and funding capabilities.
1. Technological Prospects and Progress
As previously mentioned, quantum computing technology encompasses various approaches, each with different potentials. For instance, quantum annealing is often considered to have less future potential compared to other approaches because it cannot run general quantum algorithms and is limited to solving specific optimization problems. Consequently, a company like D-Wave Quantum (QBTS), which focuses on quantum annealing, may have less growth potential compared to those pursuing other technological paths.
From a technical standpoint, beyond the potential of each technological path, another critical factor is the current performance metrics achieved by these companies. Metrics such as gate fidelity, quantum volume, and algorithmic qubits (#AQ) are essential in objectively evaluating a company's current technological level and research progress.
Performance Metric | Measured Capability |
Gate Fidelity | Accuracy and reliability |
Physical Qubits | Raw computational scale |
Algorithmic Qubits (#AQ) | Practical usability, i.e., the size of real-world problems that can be solved |
Quantum Volume (QV) | Overall performance and reliability |
CLOPS (Circuit Layer Operations per Second) | Speed and efficiency |
Coherence Time | Stability |
Company | Core Performance Metrics and Achievements |
IonQ | #AQ: Reached #AQ 64 in September 2025 Gate Fidelity: Achieved over 99.99% two-qubit gate fidelity |
D-Wave | Physical Qubits: Advantage 2 processor contains over 4400 superconducting qubits |
Rigetti | Physical Qubits: Rigetti's Ankaa-3 system has 84 physical qubits Gate Fidelity: Ankaa-3 system achieved a median two-qubit gate fidelity of 99.5% |
Quantum Computing (QUBT) | Quantum Primitives or Qdits: QUBT's Dirac system offers over 11,000 quantum primitives |
Quantinuum | Quantum Volume: In May 2025, its H2 system set an industry record with a Quantum Volume of 8,388,608 (2^23) |
IBM | Quantum Volume: Repeatedly broke quantum volume records Physical Qubits: Has released processors with over 1000 qubits |
Quantum Advantage: Demonstrated quantum advantage on real scientific tasks far surpassing classical supercomputers through its Willow chip and algorithm | |
Microsoft | Created and measured Majorana fermions, the foundational material for building topological qubits. These qubits are inherently resistant to interference, providing a material basis for building scalable, general-purpose quantum computers. |
Amazon | Physical Qubits: Launched experimental chip Ocelot, featuring 5 core "cat qubits" responsible for storing and processing actual quantum information, a special type of physical qubit. |
Based on the information above, Quantinuum and IonQ stand out with their impressive overall performance metrics. Quantinuum's quantum volume (QV) of 223 is considered a benchmark for evaluating a system's comprehensive capability, while IonQ's gate fidelity of 99.99% highlights the superior quality of its hardware. Collectively, these two companies exhibit the strongest performance in general quantum computing metrics. As tech giants, Google and Microsoft leverage their robust core businesses to lead in exploring advanced fault-tolerant technologies.
2. Commercialization Potential and Progress
For quantum computing companies, the ultimate goal is transforming technology into profitability. Therefore, evaluating each company's commercialization status and future potential is crucial. This involves examining:
Current Commercialization Progress: This aspect impacts short-term revenue and financial health.
Future Commercialization Potential: This aspect may have a more profound impact on long-term market potential and valuation.
Current Commercialization Status
Presently, D-Wave and IonQ outperform other pure quantum computing companies in terms of commercialization. IonQ's advantage lies in its extensive market coverage, being the only company providing access to AWS Braket, Azure Quantum, and Google Cloud. Meanwhile, D-Wave is the first to commercialize quantum hardware, with its quantum annealing technology designed to solve specific optimization problems. Additionally, D-Wave's diverse revenue streams and relatively mature business model, including subscription and professional services via its Leap cloud platform, ensure stable growth.
Commercialization Potential
Generally, the commercialization potential for general quantum computing is greater due to its ability to address a broader and more diverse range of problems, thus corresponding to a larger market size. Consequently, D-Wave's potential is considered lower compared to other pure quantum computing companies.
Among general quantum computing firms, IonQ and Quantinuum, given their technological leadership, are best positioned to rapidly translate technology into commercial solutions. Regarding market share, IonQ is uniquely connected to the three leading cloud platforms, giving it a strategic advantage in expanding potential markets and revenue streams in the future.
It's essential to note that quantum computing technology is still in its formative stages, and both R&D and commercialization are lengthy processes. Surviving the R&D race is fundamental, requiring companies to maintain robust cash flow. In this regard, IonQ is the leader among pure quantum computing companies.
IonQ's revenue has shown consistent and strong growth over recent quarters, with Q3 2025 revenue at $39.9 million, a 222% year-over-year increase that surpassed its previous revenue guidance by 37%. Furthermore, IonQ boasts strong financing capabilities, having completed a $1 billion equity financing round in July 2025, followed by a $2 billion financing announcement in October, resulting in cash reserves of $3.5 billion. Additionally, IonQ currently carries no long-term debt.
This financial strength ensures IonQ can invest heavily in research and development, with R&D expenses reaching $143 million in the first half of 2025. It also enables the company to scale up effectively, as demonstrated by its acquisitions of companies like Oxford Ionics and Lightsynq.
How Should Different Investors Choose Quantum Computing Stocks?
The choice of which quantum computing stock to invest in may depend on an investor's risk tolerance, their perspective on various technological pathways, and their investment style.
Risk Tolerance: Conservative vs. Aggressive
If you are a conservative investor, you might opt for technology giants involved in quantum computing. These giants have core businesses that provide stability, ensuring that even if their quantum computing ventures do not succeed, their stock prices are unlikely to be significantly affected.
For more aggressive investors, pure quantum computing stocks might be appealing. However, it is advisable to keep the investment within a manageable risk level to mitigate potential losses.
Patience for Investment Duration
Long-term investors who are willing to wait for the widespread commercialization of quantum computing and are not deterred by short-term volatility should focus on leaders in general quantum computing technology, such as IonQ and Quantinuum. Quantinuum, currently a private company controlled by Honeywell, might go public as early as 2026, according to Barron's.
Medium-term investors looking to capitalize on early industry developments might consider companies that are promising in terms of commercialization in the near future, such as D-Wave (QBTS) and Rigetti (RGTI). Rigetti has its own fab (Fab-1), has deployed 18 systems, provides services on AWS and Azure, and has recently secured orders from government and commercial clients.
Summary
Based on an analysis of technology and commercialization, TradingKey suggests IonQ as the most promising among pure quantum computing public companies. Among tech giants, Microsoft and Google show the most potential in quantum computing achievements. Investors should also keep an eye on Quantinuum's potential IPO. Ultimately, investment decisions should be guided by one's risk tolerance, patience, and understanding of the technology.
FAQ
1. How far is quantum computing from commercialization?
Some technologies have already been commercialized, such as quantum annealing, which is used to solve specific optimization problems like logistics scheduling and financial modeling. However, large-scale general applications, such as drug development and material science simulations, have yet to be commercialized. NVIDIA CEO Jensen Huang believes it will take decades for quantum computing to mature.
2. What is the future market size for quantum computing?
McKinsey predicts that by 2035, the quantum computing market could be valued between $28 billion and $72 billion.
3. How should one assess the high valuations of pure quantum computing companies when buying?
Currently, the price-to-sales ratios of nearly all pure quantum computing stocks are extraordinarily high, as the market anticipates quantum computing becoming the next big thing after AI. This could lead to significant valuation bubbles and potential stock price corrections.
However, missing out on this potential investment opportunity might also mean missing out on significant wealth growth. Investors should evaluate the growth trajectory of companies; if a company's revenue continues to grow strongly, it can support high valuations to some extent, serving as a signal for investment.
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