Forget Quantum Computing Inc. Stock: Buy This AI‑First Tech Titan Hiding in Plain Sight

There are a few different ways to tap into the coming quantum computing revolution. You can invest in a pure-play stock like Quantum Computing Inc. (NASDAQ: QUBT) and hope that it is among the ones that break out and don't get gobbled up by a bigger fish or go out of business. Think of all the dot-coms there were before things started consolidating.

Another option is to find an exchange-traded fund (ETF) that invests in a pool of cutting-edge quantum computing stocks for that diversification and active, or passive, management that comes with it.

Image source: Getty Images.

The third choice is to bet on one of the tech titans that are ramping up their quantum computing capabilities and may start gobbling up some of the winners along the way. Right now, I'd go the ETF or tech titan route, just out of caution about jumping in too deep with a more speculative pure-play stock.

And one tech titan I'd zero in on is Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), the parent company of Google.

Alphabet stock is coming off a stellar 2025

Alphabet was the top-performing "Magnificent Seven" stock in 2025, returning about 65% for the year.

The analyst community is somewhat cautious about Alphabet after the 2025 surge, perhaps due to higher-than-expected capital expenditures for 2025 and plans to increase spending in 2026. There was a time not long ago when investors wanted to see increases in capital spending on artificial intelligence (AI) and technology, but that flipped late last year as many started questioning the return on all of this AI spending, with, at the time, fears of an AI bubble popping.

Also, the higher capex spending had the effect of lowering Alphabet's operating margin by a percentage point in the most recent quarter, so those concerns may be lingering with more spending coming in 2026.

While AI spending in general may be overdone by some companies in some industries, I don't see that as the case with hyperscalers like Alphabet, so this is not a concern that I share.

Investors may also have some regulatory and legal worries; last week, a federal judge in the Northern District of California allowed a class action suit by consumers to proceed against the company over antitrust claims about the Google search engine.

This is separate from the antitrust suit the federal government filed against Google Search in 2020, in which the courts subsequently ruled in favor of the government. The judge levied the remedies last year, which Alphabet has appealed.

These are the primary sources of uncertainty.

Investing in quantum computing

Outside of these areas, Alphabet has a lot of momentum. It continues to gain market share in its cloud computing business, ranking a solid No. 3 behind Amazon Web Services and Microsoft Azure.

It has also maintained its dominance in search with about a 90% market share, and it is closing the gap with OpenAI with its Google Gemini chatbot.

It is also investing in the next frontier, quantum computing. In late 2024, Google came out with its Willow quantum computing chip, which was hailed for its computational speed and capacity to reduce errors. In October, it introduced a new quantum algorithm called Quantum Echoes. Google said it marks the first time that a quantum computer has successfully run a verifiable algorithm that beats the performance of supercomputers.

"We've demonstrated it runs 13,000 times faster on Willow than the best classical algorithm on one of the world's fastest supercomputers," stated a Google blog post.

So, Alphabet is clearly looking beyond AI and seems to have established itself as a serious player and innovator in quantum computing.

It's hard not to like where Alphabet is headed, even if analysts suggest returns could be in the single-digit territory over the next 12 months. It's also not carrying a ridiculously high valuation like many other tech stocks, trading at 29 times forward earnings.

Quantum computing in general could be the next big thing, and Quantum Computing Inc. has awesome multibagger potential. But the better play, in my view, is the tech titan named Alphabet, which is already laying the groundwork to lead in quantum computing.

Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.