What is Quantum Computing?
A quantum computer is a type of computer that uses quantum mechanics so that it can perform certain kinds of computation more efficiently than a regular computer can, both by using lesser energy and at a faster speed.
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Is Quantum Computing the next disruptive technology?
The Straits Times front page on 1 June 2022 has the following header – Singapore to setup Quantum Computing Hub and Foundry.
Singapore is stepping up its investments in quantum computing with two new initiatives aimed at boosting talent development and providing better access to the nascent technology as Singapore’s Deputy Prime Minister Heng Swee Keat announced the launch of the National Quantum Computing Hub on 31 May 2022. The Hub will pool expertise and resources from the Centre for Quantum Technologies and other institutions, and the National Quantum Fabless Foundry.
Before we get into it any further, first and foremost, we must highlight that the quantum computing technology is nascent.
Sure, it demonstrates truly disruptive potential, with the potential to produce tremendous improvements in computational performance for a wide range of problems in various fields, including optimisation, machine learning, chemistry, finance, and healthcare. For example, the fastest quantum computer is more than 150 million times faster than the quickest conventional supercomputer and can solve in minutes a problem that would take a supercomputer 10,000 years.
Sure, it has also been proven feasible to some degree and has even supported and accelerated various aspects of research and development. Sure it has also advanced beyond the laboratory, but it has still not been able to achieve large scale implementation for a successful commercial application yet. Therefore, the timeframe commercial success is still highly uncertain.
Now that we have talked about the risks, we are aware that this is a sector with huge potential for the future. Mr Heng said “Our investment in quantum computing and quantum engineering is part of our approach of trying to anticipate the future, and proactively shaping the future that we want”.
If Singapore, one of the top countries globally by many measures is getting into Quantum Computing to future proof the nation, we think we should have a look too.
Here we have a list of stocks grouped by category, we will provide some insights into what these companies are doing and where they are currently at.
10 Quantum Computing Stocks
| Company | Ticker | Category |
| IonQ | NASDAQ:IONQ | Pure play |
| Rigetti | NASDAQ:RGTI | Pure play |
| Quantum Computing Inc | NASDAQ:QUBT | Pure play |
| Alphabet | NASDAQ:GOOGL | US Big Tech |
| Microsoft | NASDAQ:MSFT | US Big Tech |
| IBM | NYSE:IBM | US Big Tech |
| Baidu | NASDAQ:BIDU HKG:9888 | China Big Tech |
| Alibaba | NASDAQ:BABA HKG:9988 | China Big Tech |
| TSMC | TPE:2330 NYSE:TSM | Chips |
| Honeywell | NADAQ:HON | Applications |
3 Pure play Quantum Computing Stocks
IonQ, Rigetti and QUBT are the three most well known listed pure play quantum computing stocks currently. As pure plays with a business model aligned to rapid quantum market growth, these three companies believe they are well-positioned to lead the way forward as quantum computing changes the world.
These three companies have broad similarities, having efficiently scaled its quantum technology which includes hardware and software infrastructure. The solutions provided by these companies can typically integrate into its customers’ platforms and assist in completing tasks and solving problems better than what classical computers can.
1. IonQ (NASDAQ:IONQ)
IonQ has a quantum hardware integrated with all major cloud platforms, quantum programming languages, and quantum software developer kits, providing the resources to solve real-world problems and optimization challenges across industries such as chemistry, medicine, finance, logistics, and much more.
2. Rigetti Computing (NASDAQ:RGTI)
Rigetti Computing is a full-stack quantum computing company, a term that indicates that the company designs and fabricates quantum chips, integrates them with a controlling architecture, and develops software for programmers to use to build algorithms for the chips.
Rigetti’s machines can be integrated into any public, private or hybrid cloud. The company also develops a cloud platform called Forest that enables programmers to write quantum algorithms.
3. Quantum Computing Inc (NASDAQ:QUBT)
QUBT is a quantum software vendor offering ready-to-run software for complex optimization computations. Its flagship solution, Qatalyst, solve complex computations to make better bottom-line decisions and eliminates the need for expensive quantum programming and expertise by the average company.
Qatalyst also uses quantum techniques to enhance classical computing performance and quality of results and uses the same application interface call to run on classical or diverse quantum computers with no additional programming required.
3 US Big Tech Stocks in the Quantum Computing race
1. Alphabet (NASDAQ:GOOGL)
Alphabet made headlines in 2019 when it demonstrated that it could solve a specific, contrived problem faster than any known traditional (classical) computer. Alphabet said it had achieved quantum supremacy, a milestone where a quantum computer has performed a calculation that would be impossible on a traditional classical computer.
Alphabet said its quantum computer was able to perform a calculation in 200 seconds that would have taken 10,000 years or more on a traditional supercomputer and is aiming to build a “useful, error-corrected quantum computer” by 2030.
To develop the technology, Google has a Quantum AI campus containing a quantum data center, hardware research labs, and quantum processor chip fabrication facilities. It will spend billions developing the technology over the next decade.
2. Microsoft (NASDAQ:MSFT)
Microsoft Quantum or Azure Quantum is a full-stack, open cloud quantum computing ecosystem which allows developers to build quantum applications and run them on multiple systems. In March 2022, Microsoft announced a breakthrough on protecting quantum information and enabling reliable computation.
Today’s quantum computing has limitations, in that the quantum bit, a basic unit of quantum information, can easily collapse when affected by environmental noise including heat, or magnetic fields. This can lead to errors and information loss, deeming them no longer useful for computation. Microsoft has demonstrated the building blocks for a Topological qubit which has built-in environmental noise protection and are expected to be faster and smaller than other kinds of qubits.
3. IBM (NYSE:IBM)
IBM has been a pioneer in providing cloud access to its superconducting quantum computers and it supposedly has the largest number of operational Quantum Computers in the world.
In 2021, IBM debuted a 127-qubit computing chip and a structure called the IBM Quantum System Two, intended to house components like the chandelier cryostat, wiring, and electronics for these bigger chips down the line. These developments edged IBM ahead of other big tech companies like Google and Microsoft in the race to build the most powerful quantum computer.
In May 2022, the company laid out its three-year-plan to reach beyond 4,000-qubits by 2025 with a processor it is calling “Kookaburra.” This is trillions of times faster than the speed of classical supercomputers.
2 China Big Tech stocks dipping their toes in Quantum Computing
1. Baidu (NASDAQ:BIDU | HKG:9888)
Baidu is building Paddle Quantum, a software stack that can plug into any quantum hardware. Paddle Quantum is a device-independent platform for building and training quantum neural network models for advanced quantum computing applications. It combines AI and quantum computing using the company’s deep learning framework which has 3.6 million developers and can support hyperscale training models with trillions of parameters.
2. Alibaba (NASDAQ:BABA | HKG:9988)
Similarly, Alibaba is betting big on quantum computing. Through Alibaba Damo Academy and Ali Cloud, it has previously launched a cloud computing service using quantum computing.
Alibaba uses intelligent recommendation algorithms to drive sales using personalized customer search recommendations on its Tmall homepage and mobile app. Alibaba also uses its quantum computing capabilities to help reduce its computation load and increase product sales for its shopping festivals.
4 Quantum Processing Chips Manufacturers to watch
Currently, companies that have the capabilities to manufacture quantum processing chips include:
- IBM,
- Alphabet
- Rigetti
- TSMC
Amid concerns that quantum computing could threaten the existence of the semiconductor industry, semiconductor maker TSMC is working hard on the development of quantum processors supported by the Taiwanese government.
Many integrated chip makers have already encountered the bottleneck of Moore’s Law and challenges will be more difficult to overcome beyond 3nm and 2nm nodes. Hence, quantum processors could be inevitable and TSMC would need to be at the forefront of this industry so as to maintain their competitiveness in the industry.
Applications
Despite the scientific and engineering challenges facing the development of quantum computers, considerable progress is being made toward applying the technology to commercial applications.
Experts believe that there are three types of near-term opportunities resulting from advances in quantum computing: quantum-safe encryption, material and drug discovery, and quantum-inspired algorithms.
Here we talk about quantum-safe encryption by Quantinuum, which is 54% owned by Honeywell, Quantinuum built Quantum Origin, the world’s first commercial cyber security platform. It uses cryptographic key generation platform based on verifiable quantum randomness. It is designed to secure the world’s data from both current and advancing threats to today’s encryption.
Quantum Origin, which is a cloud-hosted platform that uses the unpredictable nature of quantum mechanics to generate superior cryptographic keys. Each key is seeded with verifiable quantum randomness drawn from quantum computers.
In the future, quantum computers will be able to break many of the encryption systems we rely upon today. Because a powerful quantum computer doesn’t exist yet, many companies mistakenly believe the data they exchange today is completely safe, provided it’s encrypted.
To defend against this attack, companies can move towards using quantum-safe encryption algorithms. Quantum Origin has been designed to support those algorithms from launch, helping companies to transition towards solutions that are resistant to quantum attack.
Does Quantum computing have a future?
Quantum Computing is a technology that has been around for decades. It first began as a theoretical construct in the 1970s/1980s and the first quantum computer was built in the late 1990s. Since then, there has been significant progress made amidst even more significant amounts of money invested.
Many of the world’s largest companies, some backed by governments have joined the race to achieve commercial applications of quantum computing. While commercial applications are limited for now, it could very well be the next disruptive technology.
However, similarly to other potentially disruptive technologies, the timeline to achieving commercial returns is highly uncertain, therefore, it would make sense to appropriately size their exposure to this sector.
