Quantum computing is hot right now. Share prices of pure-play quantum computing stocks have been soaring, and the hype train has clearly left the station. However, investors should know that quantum computers have never solved real-world problems faster than classical computers, and useful quantum computers are likely still decades away. While quantum computing is exciting and potentially a big thing, it’s still far from a commercially viable reality.
Since quantum computing is likely to be at least many years away from being usable for real-world calculations, it would be wise to bet on international business machine(NYSE:IBM) and letter(NASDAQ: Google)(NASDAQ: Google). If you have $1,000 to invest and want low-risk exposure to quantum computing, these two tech giants are your best bets.
Back in 1998, researchers at IBM and several major universities built the first computer to exploit the complex and bizarre principles of quantum mechanics. order, using qubits made of hydrogen and chlorine atoms.
Since then, IBM has been working on quantum computing technology, contributing to significant advances in the field. The company built a cloud-accessible quantum computer in 2016 and built more powerful models in the following years. IBM researchers are using a 127-qubit quantum computer in 2023 to solve a certain type of problem faster and more accurately than a conventional computer, albeit without any practical application.
IBM’s quantum roadmap calls for a quantum-centric supercomputer in 2025, a system with 200 qubits in 2029, and a quantum-centric system with thousands of qubits after 2033. Supercomputers may be able to solve safety, chemistry, machine learning and optimization problems.
Investing in IBM One of the great things about getting involved in quantum computing is that you’re buying a global technology giant that doesn’t put all its eggs in one basket. The company is a leader in hybrid cloud computing and enterprise artificial intelligence, with a large enterprise customer base and decades-long relationships. Quantum computing could eventually become a big business for IBM, but even if the technology doesn’t live up to the hype, IBM is poised to thrive.
For a low-risk quantum computing stock, IBM is the best choice.
Another tech giant making waves in the field of quantum computing is Alphabet. Back in 2019, Alphabet used a 53-qubit quantum computer to complete a calculation in minutes that would have taken an estimated 10,000 years on a large cluster of conventional computers. The exact calculations are of no use, but the results are still significant.
One of the biggest problems that quantum computers still must overcome if they are to be useful for real-world calculations is error correction. Qubits are fragile, and various factors, including thermal fluctuations and even cosmic rays, can introduce errors that derail calculations. While quantum computing researchers still have a lot of work to do in this area, Alphabet announced a major breakthrough last month.
Alphabet used its Willow quantum chip to demonstrate that it can reduce errors exponentially as the number of qubits increases. As quantum computers scale up, the increase in errors is one of the things that hinders the construction of systems with hundreds or thousands of qubits. With Willow, Alphabet can increase the number of qubits while reducing error rates.
Willow is also able to solve certain operations, which would also be useless in the real world, in five minutes, rather than a billion years for a traditional supercomputer. It may be years before Alphabet’s quantum computer can solve useful problems faster than classical computers, but it has the building blocks in place today.
Like IBM, Alphabet is a relatively low-risk way to bet on quantum computing. If Alphabet can apply useful quantum computers to tough problems in artificial intelligence, search and other areas where the company operates, it could be a big deal. However, if the technology doesn’t pan out, or takes decades to push the field forward, Alphabet will remain the leader in digital advertising, cloud computing, and artificial intelligence, and a few other moonshots could be on the way will be rewarded.
For a quantum computing stock that’s growing faster than IBM and isn’t too risky, Alphabet is a good choice.
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Suzanne Frey is a senior executive at Alphabet and a board member of The Motley Fool. Timothy Green works at International Business Machines. The Motley Fool has positions and recommendations for Alphabet and International Business Machines. The Motley Fool has a disclosure policy.
The Smartest Quantum Computing Stocks to Buy Now with $1,000 Originally Posted by The Motley Fool
