Prediction: This Will Be the Best Pure-Play Quantum Computing Stock Over the Next 5 Years

Quantum computing is developing quicker than most investors realize. For a long time, 2030 was the year that most quantum computing firms pointed to as the arrival date of commercially viable quantum computing. That timeline has accelerated to 2029 as the technology has progressed, potentially making a new computing paradigm right around the corner.

Investors want to profit from this any way they can, and one of the most obvious ways is to pick a pure play like IonQ (NYSE: IONQ). IonQ is my top quantum computing investment, and it looks primed to be an incredible performer over the next five years.

Image source: Getty Images.

IonQ is casting a wide net

IonQ is tackling all sectors of quantum computing. The first and most obvious entry way is to develop a viable quantum computer that provides valuable insights in a different manner than traditional computing. It's getting closer to delivering its 256-qubit system and expects these units to start selling in early 2027. There are already preorders for some of these units, and if they are successful, it could see wider early-stage adoption.

This will lay the groundwork for more impressive computers, but it's a great start for now.

Another area where IonQ is looking to integrate vertically is through chip production. IonQ closed its acquisition of SkyWater, which gives it access to a chip fabrication firm. This allows IonQ to design and manufacture its quantum chips in-house, giving it an advantage over others in its industry.

Another major part of the quantum computing investment thesis is cybersecurity. Quantum computers will be able to break current encryption incredibly fast and render current state-of-the-art security methods useless. This is a big problem, but could also be a major opportunity.

IonQ will be playing both sides of this game, selling computers while also selling cybersecurity products to defend against these new capabilities. It took steps this week to secure that future by purchasing Elisity, a cybersecurity provider, for $1.3 billion.

All these moves are positioning IonQ as a major player in the quantum computing industry. IonQ will be able to make components, the computers themselves, provide software to utilize the devices, and protect against some of the threats they could pose. That's a highly vertically integrated company, and we could be witnessing the birth of a big tech superpower for the quantum age.

At the same time, all this could flop, and IonQ could go to $0. That's the reality when you're investing in an aspiring company like IonQ that's working to be all things quantum computing.

As a result, I think it's OK for an investor to allocate about 1% of their portfolio to it. That way, if it goes bust, it won't be a huge loss. But if it explodes higher, it could be a massive winner.

Keithen Drury has positions in IonQ. The Motley Fool has positions in and recommends IonQ. The Motley Fool has a disclosure policy.