Is D-Wave Quantum Stock Your Ticket to Becoming a Millionaire?

While most of the investor focus in the tech world may be on artificial intelligence (AI), there's another emerging tech trend that could deliver monster growth in the next few years: quantum computing. The theoretical capabilities of quantum computers could allow them to perform calculations far beyond the reach of even the most powerful classical supercomputers, and some of the preliminary results achieved by early models have been nothing short of incredible. This technology isn't advanced or accurate enough to be used widely on a commercial scale yet, but progress is ongoing.

Many companies, both large and small, are developing quantum computing systems in hopes that they will be among the ultimate winners in the space. D-Wave Quantum (NYSE: QBTS) is one of them, and it's taking a unique approach that I think gives it a leg up on the competition. But could that advantage provide it with enough growth potential to make you a millionaire from a relatively small investment?

Image source: The Motley Fool.

D-Wave Quantum's niche approach

Most companies participating in the quantum computing race are attempting to build general-purpose quantum computers that can be deployed in many applications, similar to traditional computers. D-Wave Quantum isn't.

Instead, it's building a computer around a technology called quantum annealing, which finds solutions by creating systems of qubits, and then gradually adjusting them to seek one of their lowest possible energy states. Doing that delivers a result that is either the best answer to the problem posed or one that's very close to it.

This technique is not suitable for all types of highly complex computing applications, but it's excellent for optimization problems. And that category includes a host of problems that could be quite valuable to solve more effectively, in areas such as supply chain management, materials science, AI inference, and weather modeling.

While quantum computing isn't being used on a widespread basis yet, some companies are already trying it in niche uses. For example, one Ford factory is using D-Wave's quantum computers to create efficient production schedules 83% faster than they were previously able to. (Such scheduling is an incredibly complex task when it comes to frequently customized vehicles.) This is just one use case. Once quantum computing becomes more mainstream, numerous companies could use the technology to optimize their business flows.

But will use cases like these be enough to drive a level of demand for D-Wave Quantum's systems that would make it a millionaire-maker stock? That's tough to say. D-Wave's unique approach will limit its upside. Even under a best-case scenario, the share of the quantum computing market it could capture is more limited than most of its rivals.

This niche of the tech world is full of promising companies that have the potential to richly reward their shareholders, and I think D-Wave Quantum is one of them. That said, its growth from here will likely fall short of what's required to make you a millionaire from a relatively small investment. And for those looking for exposure to the space, I'd recommend spreading out your investment among several quantum computing stocks to reduce your risk.

Keithen Drury has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.