2024 AI and Quantum Computing Stocks To Keep An Eye On

H Hannan

2024 Ai and Quantum Computing Stocks to keep an eye on
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Quantum computing holds immense disruptive potential across industries, with quantum AI being a particularly promising application area. This has spurred growing interest in the emerging quantum technology sector among investors looking to capitalize on the coming quantum advantage era. While still a nascent, high-risk market, let’s explore some of the publicly traded stocks related to quantum artificial intelligence that bold investors may want to have on their radar.

D-Wave Systems (Private)

D-Wave is a pioneering quantum computing company based in Canada with a unique approach. Rather than using gate-model quantum circuits, D-Wave systems perform quantum annealing for optimization problems using superconducting flux qubits. While debated whether true quantum speedup is achieved, D-Wave has sold systems to major corporations and research institutions. Its quantum annealing processors with 5000+ qubits demonstrate substantial scaling capability and could be well-suited for certain quantum AI algorithms. D-Wave aims to produce practical applications on its quantum annealing systems in coming years. Though not publicly traded currently, D-Wave would be an intriguing quantum investment opportunity if it ever IPOs.

IBM (NYSE: IBM)

The tech giant IBM has established itself as an early leader in quantum computing research. IBM operates a 20+ qubit cloud-access quantum processor available to external users and offers enterprise quantum consulting services. It is also pursuing in-house development of larger-scale superconducting quantum systems. With vast resources and institutional knowledge in semiconductors, materials, and quantum physics, IBM could be well-positioned to deliver commercial quantum advantage. Its significant push into quantum tech, including tailoring AI algorithms for near-term quantum capabilities, makes IBM a safer diversified bet on the quantum future.

Microsoft (Nasdaq: MSFT)

Microsoft has invested in quantum computing through its Station Q lab and QuArC software development kit allowing quantum algorithm design. It has also partnered with quantum computer makers like Honeywell. Leveraging its prowess in R&D, software, and cloud computing services, Microsoft aims to make quantum systems accessible to customers across industries for secure communications, AI, and more. With strong cash flows from its traditional software businesses, Microsoft can absorb the risk of developing full-stack quantum solutions including quantum machine learning capabilities. Its diversification lowers its quantum risk profile.

Google (Nasdaq: GOOG)

Google/Alphabet has been working for years on its own quantum processors using superconducting qubits, achieving quantum supremacy in 2019. Google provides quantum computing access via its cloud platform and is exploring quantum AI use cases in areas like combinatorial optimization. With abundant resources and some of the top minds in quantum information science including John Martinis, Google’s quantum program has produced pioneering research results in error correction and chip architecture. The company is also investigating quantum neural networks leveraging capabilities like entanglement and superposition. Google’s focus positions it strongly in the quantum AI race.

Nvidia (Nasdaq: NVDA)

Nvidia leads the AI hardware industry with its GPUs optimized for neural networks and machine learning. It has expanded into quantum computing software through releases like cuQuantum SDK for GPU-acceleration of quantum workloads. Nvidia is also researching quantum-enhanced AI algorithms such as quantum generative adversarial networks. With capabilities across quantum and classical systems, Nvidia could be integral for developing hybrid quantum-classical AI solutions. Its gravitational pull in the AI ecosystem makes Nvidia a strategic play on this convergence.

IonQ (NYSE: IONQ)

IonQ is a pure-play quantum computing company that went public via SPAC merger in 2021. It employs trapped ion qubits and recently announced a state-of-the-art system with 32 fully-connected qubits. IonQ provides cloud access to its systems and is working on quantum ML applications with partners like Hyundai. With technical rigor but earlier-stage hardware compared to giants like Google and IBM, IonQ represents higher risk but larger potential upside. Its focus directly on quantum gives stronger exposure compared to diversified tech companies.

Rigetti (Nasdaq: RGTI)

Rigetti recently became public via a SPAC, gaining capital to advance its superconducting quantum processor technology. It provides cloud quantum computing services on its existing 30+ qubit systems and is iterating towards larger Advantage systems built on a modular architecture. Rigetti specifically targets quantum machine learning as an application domain where it expects initial algorithms like quantum support vector machines to confer advantage. Smaller and earlier in development than competitors, Rigetti offers speculative investors pure quantum upside.

Considering Risks and Timescales

Investing in quantum computing and quantum AI does come with substantial risks and uncertainties however. The field is still in its infancy, with issues like error correction and scaling remaining mammoth challenges. The general quantum advantage could be a decade or more away, and commercially viable quantum AI even further out. Research delays or dead-ends are very possible with such an emerging technology. Regulatory risks around security and intellectual property also exist in this nascent market. Beating giants like Google and IBM to wide profitability will be extremely difficult for upstarts. While the promise is enormous, investors need to be comfortable with the high risk, capital intensity, and extended timelines in quantum.

The Quantum Future

Regardless, quantum AI has the potential to transform areas like machine learning, optimization, and simulation in groundbreaking ways. The quantum computing revolution could yield tremendous value in the long-term similar to how classical AI and semiconductors grew to reshape the technology landscape. For investors with high risk tolerance and patience to withstand short-term volatility, the leading publicly-traded companies pursuing this infinitely vast quantum opportunity space present intriguing possibilities. Quantum tech is on the frontier – stay tuned as these stocks ride the coming waves toward the AI revolution ahead.

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