You may have lots about Quantum Computing. But do you know anything about the companies driving these innovations forward? The quantum computing landscape is characterized by a dynamic mix of established technology companies, innovative startups, and collaborative research initiatives. Here, we look at Investment in Quantum Computing. You should, of course, take the appropriate level of financial advice for your circumstances before you Invest In Quantum Computing, and this article is not to be used as financial advice.
These organizations are pivotal in advancing quantum computing technologies, exploring their potential applications, and addressing the challenges associated with making quantum computing viable and accessible on a large scale.
Invest in Quantum Computing?
Can you Invest in Quantum Computing?
Yes. But it needn’t be difficult. Many companies that are already household names are developing Quantum Computing. So to Invest in Quantum Computing doesn’t mean you need a family office.
Unless you’ve been sleeping, you must have heard about QC or quantum computing, which threatens to overturn the world as we know it, impacting everything from the internet to cryptography. But how do you get involved and play a part in this nascent revolution? This article is not financial advice.
Quantum Computing 101
Quantum computing represents a significant advancement in the field of computation, utilizing the principles of quantum mechanics to process information in ways that traditional computers cannot. This technology can potentially revolutionize various industries by solving complex problems more efficiently than classical computers. As such, investing in quantum computing offers a unique opportunity for individuals and institutions looking to contribute to developing cutting-edge technology and potentially reap the benefits of its commercialization.
At its core, quantum computing is a type of computing that uses the principles of quantum mechanics, a branch of physics that describes the behavior of energy and material on atomic and subatomic levels. Unlike classical computers, which use bits (0s and 1s) to process information, quantum computers use quantum bits or qubits. Qubits have the unique property of being able to exist in multiple states simultaneously, thanks to quantum phenomena known as superposition and entanglement. This allows quantum computers to process a vast amount of information at once, making them potentially much more powerful than classical computers for specific tasks.
Why Investors are Interested in Quantum Computing?
Quantum computing has garnered significant interest from investors due to its potential to revolutionize various industries by solving complex problems that are currently intractable for classical computers. This interest is driven by several key factors that highlight the transformative nature of quantum computing and its potential economic impact. Promise has been shown in areas such as factorization, such as Shor’s Algorithm, which could be used in breaking cryptographic codes. Additionally, technologies such as QKD (Quantum Key Distribution) could be used to create secure networks.
Investing in quantum computing, while promising, carries its own set of risks and considerations. The technology is still in its early stages, and practical, widespread applications may be years away. Moreover, the high cost of research and development, coupled with the technical challenges of building scalable quantum computers, means that investments in this sector may take longer to mature compared to other technology investments.
Companies that successfully integrate quantum computing into their operations could gain a competitive advantage. For example, in the pharmaceutical industry, quantum computing could dramatically accelerate drug discovery processes, reducing the time and cost of bringing new drugs to market. Investors are keen on backing companies that could emerge as leaders in their respective fields by leveraging quantum computing technologies.
Potential investors should conduct thorough research and consider the technical, financial, and market challenges associated with quantum computing. Understanding the fundamentals of quantum mechanics and computing, the competitive landscape, and the potential impact of quantum computing on various industries can help investors make informed decisions.
The growing ecosystem of startups focused on quantum computing technologies and increasing intellectual property filings in this area demonstrates the innovation and entrepreneurial activity surrounding quantum computing. Investors are attracted to the opportunity to invest in companies at the forefront of developing new technologies and applications in quantum computing, anticipating that these early investments could yield high returns as the technology matures and becomes commercially viable.
Ways to Invest in Quantum Computing
Perhaps the easiest way for most people who cannot get involved with private equity is to invest in public companies working on Quantum computing technology. At Quantum Zeitgeist, we cover hundreds of companies working on Quantum computing. Most of these companies are private, which means “Joe Public” is excluded unless you have a family office or investment firm.
The field of quantum computing is driven by a mix of established technology giants, innovative startups, and collaborative research institutions. These entities are at the forefront of developing quantum computing technologies, exploring their applications, and solving the technical challenges associated with making quantum computers practical and accessible. Here’s an overview of some key players in the quantum computing landscape.
Publicly traded companies engaged in Quantum Computing.
Honeywell International
This conglomerate, founded over 110 years ago in 1906, is getting involved in quantum technologies. You may not have heard of this company, but you may even have its devices in your homes as it has made control systems for many years for domestic and commercial properties. For several years, Honeywell has been working on our trapped-ion qubit technology that, due to Honeywell’s expertise, can be uniformly manufactured and controlled more easily and quickly compared to alternative qubit technologies that do not directly use atoms. Honeywell boasts of having a century of experience in system controls, and I don’t doubt that boast.
Honeywell’s qubits are all identical and can successfully utilize their natural properties. Compared to other systems with specific, fixed locations for qubit computation, Honeywell can move ions so that they can arbitrarily connect any qubit to another qubit, enabling more complex algorithms with fewer computational steps.
The ticker for Honeywell is NYSE: HON and it is listed on the New York Stock Exchange, which means that it is likely that most brokers around the world will enable you to trade it.
SK Telecom (South Korea Telecom)
Located, you guessed it, in South Korea, this company was founded in 1984 and is likely a company you have not heard of. But why, you might ask, does it make the list of publicly traded companies? Simple, because the company also has a stock market listing in the US (ADR), which means it is relatively easy to trade and invest in.
Already, SK Telecom employs Quantum technology from ID Quantique’s Quantum Random Number Generator (QRNG), which it deploys in its 5G authentication center to prevent hackers and create quantum-safe security. QRNG are devices that constantly generate quantum random numbers, which are used as a much more secure foundation of cryptographic keys – meaning their systems are less likely to be hacked or broken into.
SK Telecom is also working on Quantum Key Distribution (QKD) technology, which means both parties can safely share a key and data. Again, it is working with ID Quantique on this project. The company is even working on preventing self-driving cars from being hacked with its Quantum Security Gateway solution. So integral is Quantum to SK Telecom’s strategy that it has invested $65M into ID Quantique (IDQ) to enable a closer working relationship.
SK Telecom can be traded relatively easily on the New York Stock Exchange under the ticker NYSE: SKM.
Raytheon
Raytheon is a publicly listed defense contractor founded by Vannevar Bush almost 100 years ago. Another goliath company that is barely a household name these days. But of course, as you would expect with military and defense ties, the company is involved in Quantum Technologies. The main areas that they work on are Quantum Computing, Classical Cryogenic Computing, Quantum Materials, Quantum Devices and Sensors, plus Optics and Integrated Photonics. On the Quantum computing front, it seems they are mainly involved with the superconducting type of Quantum Computer. But as you would expect, they are generally interested in Quantum or Qubit control systems in addition to Quantum Computing Algorithms (which, according to them, are: Quantum walk algorithms and for simulating physics systems such as plasma dynamics).
Nokia (Bell Labs)
Maybe some of the younger generation simply won’t know Nokia, but for those who were around at the Cambrian explosion of the cell phone will undoubtedly know Nokia (The company most famous for its line of cell phones). Older generations will know of Bell Labs, which brought us some of the most amazing inventions of the 20th century (Transistors, lasers., etc.). Now, Nokia is the parent of the fantastic technology incubator Bell Labs. A lab with such a famous history will be working on the future technology: Quantum Computers. Nokia Bell Labs (NBL) is working on topics ranging from topological quantum computing to quantum security (as you would expect). From our research, it appears that NBL is focused on algorithms and theory instead of building any hardware. Very interestingly, if you look at the share price of Nokia over its history, you can see two significant peaks, one you might ascribe to the dot-com boom and bust and another run up to the recession (2007/2008). Still, importantly, this was the time of the introduction of the Apple iPhone. So the question is, will there be another peak caused by Quantum Computing?
Microsoft
No introduction is needed. It is one of the world’s largest software creators and is well known for giving us DOS and Windows and the gaming console Xbox. But did you know about Microsoft’s Quantum Computing efforts? Will “the beast of Redmond,” as the company was often known in the browser wars of the 1990’s.
Microsoft is getting seriously behind the Quantum Computing revolution and has even brought out its framework and language. They didn’t call it QOS (for Quantum Operating System), but similar to the C# programming language, you guessed it, they called it Q#. Pronounced q-sharp, the same as the programming language, you can read more about the language and framework here from Microsoft. Plus, for those who would also like a tutorial, there are quantum computing tutorials that the authors of Quantum Zeitgeist have written, and you can see this here (a worked introduction and even an elementary introduction to entanglement). As you would expect, Microsoft is also enabling the Quantum Cloud through its Quantum Azure compute platform.
On the hardware side of the equation (no pun), Microsoft is working on a type of Quantum Computer (or rather qubit) called a topological qubit. A dedicated team was created in 2005 established under the name of “Station Q” with a range of world leading scientists attacking some of the challenging fundamental questions of physics. Microsoft has not put its eggs in one basket. It has backed research into hybrid superconducting/semiconducting devices in conjunction with several leading laboratories around the globe, such as Delft, Niels Bohr Institute, University of Sydney, Purdue, University of Maryland, and ETH Zurich.
Topological qubits have numerous advantages, but these are not likely to be near-term devices. It is likely more stable, but Microsoft’s efforts are not leading it to scale the number of Qubits anytime soon. However, that doesn’t mean there is no inherent value in the topological approach, as in the long term, it may provide one of the robust ways of creating Quantum Computers.
Microsoft remains an attractive proposition for potential investors due to its diverse portfolio range and recent success in the cloud area as the revenue from operating systems declines. It has a few sexy consumer products, such as the Xbox.
Microsoft is listed on the NASDAQ (MSFT).
IBM (International Business Machines).
Big Blue has been making lots of Quantum noises regarding its prowess in creating a device with a few 10s of qubits. Rather like the early microcomputers, the more bits or qubits, the better, and IBM has been pushing out press releases with up to 20 qubits available for researchers to use.
IBM was among the first to create an open platform where researchers could utilize these processors and run software using qubits on their cloud hardware. When the QZ authors first used IBM, the system ran under Blue Mix with just five qubits. IBM appear to have consolidated their efforts and naming to use “IBM Q Experience”.
Not many companies can claim to have built IBM Q System One, the world’s first integrated universal quantum computing system, which was displayed at the Museum of Science in Boston.
IBM at the time of writing (August 2019) has not made as many into roads into the Cloud space, lagging behind AWS (Amazon Web Services) Microsoft Azure and Google Cloud. But don’t expect it to stay that way forever, and we expect a significant push on the cloud front from Big Blue. Over the last few years, we have certainly been impressed with how IBM has made its cloud offering more user-friendly. What this means for the investor is the potential to buy more than just the Quantum Computing side of things, but a company steadily transforming itself. Plus, IBM does pay an attractive dividend.
AT&T Inc
One of the largest telecoms was related to another entry (Bell Labs), but now Bell Labs is under the stewardship of Nokia. However, AT&T is getting involved in the quantum space, mainly the Quantum Internet. It seems that given its networking past, the company wants to work on ways to connect Quantum Computers to create a so-called Quantum Internet. Closely collaborating with CalTech (California Institute of Technology), Stanford, and Government laboratories, it’s working on building out capabilities and IP.
The impact of quantum networks will likely be huge. We are at the birth of the Quantum Computing Revolution with working devices from the likes of IBM, D-wave, and others. According to Caltech physicist John Preskill, one challenge will be connecting all these quantum machines and building quantum networks, often connecting and crisscrossing across the planet, somewhat akin to the internet today.
Intel
It is still one of the dominant processor manufacturers on the planet. I’m using an Intel processor to type this. Sure, there are others, such as AMD or NVIDIA, for running graphics (or for speeding up specific tasks), but Intel has remained a technology stalwart even in spite of many upstarts.
Intel has been working on Quantum Computing for several years and started with a collaboration with QuTech in 2015. Better late than never. The collaboration is developing Quantum Processors, using Intel’s vast knowledge and fabrication, control electronics, and architecture. As you would expect, being a silicon company, its chips are based around silicon. Their processor, Tangle Lake, is based on superconducting qubits. However, they are not content to just stick with superconducting qubits. They are investigating spin qubits, which might offer significant advantages in having the control electronics close to the physical qubits.
Of course, buying into Intel right now should be more than just about its Quantum Computing efforts. On the standard processor side of things, it remains a strong competitor. Still, as of writing this article (August 2019), it is clear that in some ways, Intel is beginning to lag behind its once smaller competitors such as AMD (Advanced Micro Devices), particularly as Intel has no notable Graphics chip, unlike AMD and NVIDIA, for example.
Google / Alphabet
You really must have heard of Google. But you may not have known about its efforts in Quantum Computing. Google emerged in the ’90s from Stanford research by its co-founders, Brin and Page. Most famous for its Google search engine, Alphabet (Google’s parent) is placing bets into all manner of technologies; you guessed it, Quantum is one of those.
According to Google AI, which appears to oversee the Quantum effort, Google is advancing quantum computing by developing quantum processors and quantum algorithms to enable researchers and developers to solve near-term problems, both theoretical and practical. Google boasts of being able to address 72 qubits in their latest bristlecone processor. They are looking at ways they can accelerate the AI process.
Their research can be divided into several topics besides building the hardware and increasing the qubit count. These simulations work on better ways to simulate matter, including biological systems. An essential aspect of building systems is to address more processors (networking) better and increase the fidelity of the processing qubits. One key area is to look at Quantum Neural Networks. Google is focused on Superconducting qubits with chip-based scaleable architecture.
Google is listed on the NASDAQ as GOOG and GOOGL (for A and C class shares).
Lockheed Martin
Lockheed Martin Corporation is an American global aerospace, defense, and security, but you might know it for its quite secretive planes used by the military. Lockheed Martin has not been shy about its adoption of quantum computing and was one of the first customers of D-wave way back in 2010. It mainly focuses on optimization problems that fit with the D-wave architecture of annealing, which differs from the gate-based style of general-purpose quantum computing.
Lockheed Martin is indeed exploiting the early commercialization of Quantum Computing with its foray into solving some of its optimization problems in conjunction with D-wave. Maybe it is not a direct play on Quantum Computing. Still, it is absorbing from the perspective that it is a company looking to gain every edge and advantage that Quantum Computing can exploit. We expect to see more and more companies like Lockheed Martin also getting involved in the Quantum space, but right now, aside from a few gate-based toy problems, there is little commercialization.
Lockheed Martin is found on the NYSE under the LMT ticker.
To invest now or later in Quantum Companies
There are some excellent, well-known companies with a diverse range of products that you can invest in today, but typically, Quantum is only a tiny part of their portfolio. Likely down the line, some specialist companies will probably be emerging that might be a direct quantum investment play. However, the only way to get involved in these wholly Quantum Computing companies is to invest as part of a VC firm or private deal.
Companies like Rigretti are likely to be the stock market darlings of the future if they don’t get gobbled up by larger players. Right now, it’s hard for the man in the street to enter this nascent market.
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