Quantum computing’s timeline is shrouded in uncertainty, but some investors are taking a long-term view despite market volatility. A recent question-and-answer session with Nvidia CEO Jensen Huang revealed that useful quantum computers may be 15 to 30 years away, sparking extreme reactions from the market.
To mitigate risk, one investor has created a separate brokerage account for their quantum computing investments, starting with a modest $1,000 investment and adding $20 monthly. The portfolio is divided among key players in the industry, including Alphabet, IBM, Rigetti Computing, D-Wave Quantum, Taiwan Semiconductor, and Palo Alto Networks.
The allocation includes 20% to Alphabet, which has recently unveiled its next-generation Willow quantum processor, and 15% to IBM, which has built the world’s largest quantum computing network. Pure-play quantum companies like IonQ are also included, as well as strategic hedges to protect against potential risks.
A cash reserve of 5% is maintained to take advantage of extreme market reactions and to be prepared for breakthrough developments in the industry. The portfolio’s concentrated approach allows for potentially higher returns if quantum computing delivers on its promise, but it also increases individual stock risk.
Despite the uncertainty surrounding quantum computing’s timeline, one investor believes that the potential returns justify patience. By maintaining a separate account with regular small contributions, they can stay committed to this opportunity without worrying about short-term volatility. This balanced approach offers the best chance to capture quantum computing’s revolutionary potential in the long term.
Source: https://www.fool.com/investing/2025/01/15/how-im-building-my-quantum-computing-portfolio