Which Quantum Computing Stock Do Stocktwits Users See as the Best Long-Term Bet?
By Stocktwits Inc | First Published Dec 16, 2024, 4:31 PM ISTQuantum computing is a new way of calculation that uses principles of fundamental physics to solve highly complex problems quickly.
Quantum computing stocks have gained momentum in recent sessions amid increased investment by big techs. International Business Machines Corp. ($IBM) is considered a pioneer in the field, with Microsoft Corp. ($MSFT), Amazon, Inc. ($AMZN) and Alphabet, Inc.’s ($GOOGL) ($GOOG) Google also making meaningful headway.
Google recently announced its new Willow quantum chip and touted it as a breakthrough achievement.
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What’s Quantum Computing?
Quantum computing is a new way of calculation that uses the principles of fundamental physics to solve highly complex problems quickly.
The technology differs from classical computing, which powers most computers and smartphones, in using quantum bits or qubits. The qubits can store zeroes and ones as opposed to either zeroes or ones by bits. The physical hardware that stores qubits is chips as is the case with classical computing.
Unlike classical computing, where each calculation is a single path to a single result, quantum computing explores many paths in parallel through superimposition. Since qubits can interact with one another, they can scale exponentially, giving quantum computers more power than classical computers.
Quantum Computing Industry - Growth Phase
According to Boston Consulting Group, the quantum computing industry will grow through three phases - noisy intermediate-scale quantum until 2030, broad quantum advantage between 2030-2040, and full-scale fault tolerance after 2040.
The firm estimates that after 2040, total annual value creation for end users in terms of operating income will be $450 billion—$850 billion, and total annual value for providers in terms of revenue will be $90 billion—$170 billion.
The main challenge in quantum computing is qubit decoherence, given that qubits are extremely sensitive to their environment and lose their quantum properties with even small disturbances. This, in turn, can cause errors to accumulate and degrade the computation quality.
Other challenges include scalability, hardware and software development, classical computer interfaces etc.
The SMID-Cap Players
Some small-cap companies with exposure to quantum computing have benefited from the rising interest in the field. These include Rigetti Computing, Inc. ($RGTI), IonQ, Inc. ($IONQ), D-Wave Quantum, Inc. ($QBTS) and Quantum Computing, Inc. ($QUBT).
A Stocktwits poll that explored users’ opinions about these companies showed that 40% of the respondents picked Rigetti as the best long-term quantum computing play. Nearly three-tenths went with IonQ, one-fifths favored D-Wave Quantum and about one-tenths chose Quantum Computing.
Rigetti Computing
Berkeley, California-based Rigetti is a full-stack quantum computing company that serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform.
The stock has gained 623% for the year.
Sentiment toward the stock remains ‘neutral’ (47/100) on the Stocktwits platform, with message volume remaining ‘low.’
IonQ
IonQ is a developer of trapped-ion quantum computers and delivers high-performance systems capable of solving the most complex commercial and research use cases. Its current generation quantum computer, IonQ Forte, boasts 36 algorithmic qubits.
The stock is up 173% for the year.
Stocktwits users hold a ‘neutral’ sentiment (48/100) toward the stock, with message volume staying at ‘low’ levels.
D-Wave
Palo Alto, California-based D-Wave is a provider of quantum computing systems, software and services. It supplies both annealing quantum computers and gate-model quantum computers.
The company recently raised $175 million in gross proceeds through two at-the-market equity offerings.
D-Wave stock has gained 468% this year.
The retail mood toward the stock is ‘neutral’ (51/100), improving from the bearish sentiment that was seen a day ago, with message volume at ‘low' levels.
Quantum Computing
Quantum Computing is an integrated photonics company that provides quantum machines. The Hoboken New Jersey-based company’s products and technology is useful in high-performance computing, artificial intelligence and cybersecurity, as well as remote sensing applications.
The stock is up 636% this year.
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