Quantum Investment

Quantum Computing Stocks for your 2021 Portfolio

December 29, 2020

As 2020 heads into its final days and we recap on the horror of the corona virus, many will have noticed the resilience of many technology companies. Despite cries from many of over-valuation and “market top” the rising trend of higher prices is leading many to look for alternative investments that could unlock massive value – and for some Quantum has that potential. We list 7 stocks that you can buy right now to add to your stock portfolio.

Here are 7 stocks that can add to your portfolio as they are publicly listed companies and all (but one: Apple) have some involvement in quantum computing. This is not a definitive list but the list contains companies that we frequently provide coverage of.

  • Honeywell (HON). Not so much of a household technology name – but the control giant has created a Trapped Ion device – the power of which correlates well with IBM. Regularly announces improvement in Quantum Volume metrics (also used by IBM to measure Quantum power).
  • IBM (IBM). Big blue is the giant of the Quantum Computing space and definitely one of the most visible. Sure, it’s not as visible in the cloud space, but has a big corporate base and wants to position as the leader in all things quantum. It’s quantum cloud services are mature as they head into their fifth year of being open to users. Can they maintain dominance and ensure that their consulting captures the need of potential customers? IBM launched the Quantum service (IBM Q) on the cloud over 4 years ago. The technology giant has steadily been increasing the number of qubits under its control and recently announced a major road map of their journey to thousands of qubits!
  • Microsoft (MSFT). Not so much the blue screen of death any longer – the company has been an R&D champion, re-inventing itself in multiple spaces. It’s Azure cloud platform is hugely popular with corporate clients and it’s push into Azure Quantum is seeing the company pick up clients such as Trimble for exploring Quantum Computing. Microsoft is not creating any hardware, but is working with a variety of providers: 1QBit, Honeywell, IonQ and QCI.
  • Amazon (AMZN). Arguably the world leader in cloud services. News circulates that Amazon may spin-off it’s popular platform technology solution AWS which has the leading market share for cloud. It should therefore come as no surprise that Amazon wants to maintain their lead as the cloud provider of choice with their Bra Ket Quantum Service. Amazon also rumoured to be building their own Quantum Computer in addition to providing access to a number of hardware providers: D-wave, IonQ and Rigetti.
  • Apple (AAPL). Not yet involved in the quantum space. But could eventually decide to get in the game and spend some of its mountain of cash on more fundamental R&D. It decided to move from Intel and create their own silicon processors which have been hailed as a resounding success. Could they decide to buy an existing quantum company or build their own team from scratch?
  • Google/Alphabet (GOOG). Alphabet, the parent of Google needs little introduction. Google has been very vocal with its achievement of quantum supremacy but has lost one its key research leaders behind the quantum project. It also has backed its own quantum language called Cirq. It is steadily moving to the cloud and positioning itself as Quantum cloud ready. The company should be able to leverage strong position in the cloud space with clients and is well places to help those clients explore quantum. The company publishes a number of Machine Learning tools such as Tensorflow, which now has a Quantum flavour.
  • Intel (INTC). Perhaps the “sleeper” of the quantum world. The chip maker has seen massive in-roads made by Nvidia, ARM, and AMD into their main market which leaves it vulnerable. That said, Intel is the only processor company working on Quantum computing and as you’d expect semi conducting qubits.

Placing bets on any single company can be a tough ask, but the brief summaries should provide some basis for further research into the quantum endeavours of the above companies. All the above companies are US based and if the trade war hots up, we expect more risk from non US companies. Plus the risk of break-up which is happening to Alibaba right now in China.

We have covered Chinese companies in the past, but we think there is more transparency in the US companies and we have much more visibility as to what they are doing with regards to Quantum. However I would not recommend discounting totally other markets like the Asian markets such as China or Korea.

This article is not investment advice and you must take appropriate advice before acting. We cannot take any responsibility for the accuracy or the actions as result of information within this article.