Key Insights
Quantum computing is not currently as prominent an investment theme as artificial intelligence (AI). The market’s primary focus is on AI, which is attracting substantial global investment.
Nonetheless, in the next few years, quantum computing has the potential to significantly enhance artificial intelligence capabilities, with several companies positioned to benefit from this innovative technology. Those willing to embrace greater risk for potentially higher rewards should consider investing in these firms.
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IonQ
IonQ(NYSE: IONQ) is among the leading stocks in quantum computing, recognized for being one of the first companies in this field to go public. Its technology promises significant implications for AI.
Unlike most competitors that utilize superconducting quantum computing, IonQ employs trapped-ion quantum computing, which offers two major advantages. First, it can function at room temperature, reducing operational costs and eliminating the need for specialized facilities. Second, it achieves greater accuracy compared to superconducting systems, holding two world records in quantum computing accuracy. While this method sacrifices some speed, the precision it offers is critical for early adopters.
Alphabet
Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL) is also advancing in quantum computing with its Willow chip, which has shown promising results. With substantial resources at hand, Alphabet seeks to develop its own technology for hybrid quantum computing, which will enhance its AI systems without relying on external suppliers.
If Alphabet succeeds in this venture, its generative AI model, Gemini, would likely experience a significant performance boost, potentially making it a leading AI model in the market. Furthermore, Alphabet could leverage its quantum computing capabilities through Google Cloud, allowing users to access this technology. This could generate high demand and profitability, especially if commercial alternatives remain limited.
Investment Considerations
Before deciding to invest in IonQ, it’s important to note that the Motley Fool Stock Advisor analyst team has identified what they believe are the 10 best stocks to buy, and IonQ is not among them.
The past successes of stocks like Netflix and Nvidia, which saw extraordinary returns, underline the potential of the recommended stocks. The average return for Stock Advisor stands at 1,058%, far exceeding the 191% return of the S&P 500.
