As artificial intelligence continues to dominate the high-tech sector, it is easy to overlook other new regions, but there is another technological change that investors may want to pay attention to.
Quantum computing inventory has been unstable last year, largely overshadowed by companies that are firmly rooted in AI space.
However, although the industry is small, some of Tech's biggest names have recently expanded to quantum computing, including Nvidia, Google, and IBM.
This type of highly advanced computing utilizes the principles of quantum mechanics by utilizing qubits of information to perform tasks at higher rates than classic systems.
One quantum computing leader shared his views on the industry with business insiders and laid out why he believes it is worth seeing for investors looking for new opportunities.
Bull case
John Levy is the CEO of SeeQC, a company that produces chips for the quantum computing sector. He highlighted some important advances as recent major moments, such as Google's Willow chip and Microsoft's advances in topological computing.
“Progress [are] Levy said: It is promoting the quantum industry one after another.
Levy highlighted the differences investors perceive between large companies with high quantum exposure and purely play quantum companies. He praised Quantum's announcement, which helps to drive the growth of both Google and IBM stocks, but also pointed out the importance of strictly quantum-centric small businesses.
Levy cited IONQ, D-Wave Systems, and Rigetti Computing As an example of pure play quantum stock with the potential for high growth. IONQ focuses on trapped ion computing, while D-Wave specializes in quantum annealing. The Ligetti operates in a superconducting space.
“If you want to invest in that area, each of those companies represents a unique quantum modality or technology,” he said. “These companies are investing in the specific quantum technology they are investing in.”
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In Levy's view, Quantum Computing is the next technological revolution, comparing it to AI, and ultimately the two are much more intertwined.
“The next thing people are looking at is Quantum and then we're seeing how Quantum and AI work together,” he said, noting his collaboration with SEECQ and Nvidia on the Quantum Supercomputing Acceleration project.
Stocks to see
But as fast as Quantum Computing Industry develops, Levy said finding opportunities can be difficult.
“This limit on the number of quantum companies means that investors don't actually have many options at this point,” he said.
That said, others seem to prefer larger tech stocks than purely play quantum companies they collect. Henry Yoshida, CEO of investment platform Rocket Dollar, said that while individual pure quantum stocks usually need attention, he sees IBM, Alphabet and Microsoft as a safer way to touch the space.
“All three are pushed hard into next-generation computing and AI infrastructure, which means we're investing heavily in quantum,” he said. “These three broader tech stocks pose a lower risk of long-term benefits as quantum matures over the next decade.”
Others see profits when targeting both large and small tech companies with mass exposure.
“The best public quantum computing stocks are IONQ and IBM,” said David Materazzi, CEO of Galileo FX. “IONQ is the only pure play with a long pipeline of work equipment on the cloud and government contracts.”
Materazzi added, “Quantum scaling, early IP ownership could mean asymmetric payoffs for investors.” In his view, if IBM can win quantum races, it could become the dominant name for a new era of computing.
