Quantum computing, fueled by recent market surges, may be overhyped for many investors. Despite shares of top players IonQ and Rigetti Computing more than tripling in the past six months, these companies remain unprofitable with limited revenue streams. The sector’s massive market moves can be attributed to news from Alphabet (Google), Nvidia, and Microsoft.
The surge began when Google Quantum AI developed a new quantum computing chip called Willow, which provided a significant breakthrough but still has a long way to go to reach commercial-grade quantum computers. A key milestone is the creation of millions of qubit processing units, currently a far-off goal. Alphabet leads the charge with ample resources and decades of quantum computing expertise.
Nvidia also plays a crucial role in connecting quantum devices to traditional computers, creating effective interfaces between different models of data and knowledge. The company’s research suggests that practical quantum computers won’t be available for years, with Nvidia CEO Jensen Huang stating that 20-year estimates may be realistic.
Microsoft recently entered the quantum computing scene with its new Majorana 1 chip, featuring a brand-new hardware architecture. However, it’s unclear whether this is a significant breakthrough or just another step in the sector’s long development process.
Investing $1,000 in Alphabet, currently recommended by The Motley Fool’s Stock Advisor team, may not be the best option due to their list of top 10 stocks for investors, which excludes Alphabet. However, Nvidia and Microsoft are among the highly recommended options, with impressive historical performance and current prospects in quantum computing.
Source: https://finance.yahoo.com/news/want-invest-quantum-computing-3-153100234.html