Full Disclosure: I bought D-Wave Quantum Inc. at around $16. Symbol: QBTS
Quantum computing is on the rise and looking to be the new player on the scene.
What is Quantum Computing?
Quantum computers use qubits, which can be in a state of 0, 1, or both simultaneously, allowing for the processing of vast amounts of information in parallel and achieving exponential speedups for certain tasks.
Who are the public traded companies that are in play right now?
There are a few companies in play right now. They each have their own approach to Quantum Computing. Some of the top names are Rigetti Computing Inc. (RGTI), IONQ, Inc. (IONQ) D-Wave Quantum Inc. (QBTS), and believe it or not International Business Machines Corporation (IBM).
IONQ: I am going to try to keep this AS SIMPLE AS POSSIBLE. This company uses ions to create qubits to solve problems. While there is a whole process involved to make that happen, that is basically what they do to create their quantum computer.
D-Wave: D-Wave uses quantum annealing computing to reach answers to difficult problems.
In nature, physical systems tend to evolve toward their lowest energy state: objects slide down hills, hot things cool down, and so on. This behavior also applies to quantum systems.
They are also moving toward a gate-model quantum system.
By applying nearly 20 years of experience in pioneering superconducting quantum annealing systems, D-Wave has undertaken a program that will build and deliver a scalable gate-model quantum computing technology. This will unlock new capabilities in the simulation of quantum systems, with applications in materials science and drug discovery. And customers will benefit from cross-platform tools and the powerful developer platform in the Leap quantum cloud service, fully integrating annealing and gate technologies.
Rigetti: Rigetti computing offers cloud based services and they also build quantum computers and the superconducting quantum processors that power them. For example, they sell the Novera QPU. The Novera QPU, a 9-qubit version of Rigetti’s most powerful quantum computer, gives you unprecedented access to quantum technology so you can explore further and accomplish your work faster.
IBM: IBM is working to create both hardware and software that is leading edge in the quantum sector. The era of quantum utility demands a quantum computing stack that supports large-scale executions on world-leading quantum computers. IBM and partners offer tools and services that simplify the work of building complex circuits and improve performance.
Why Does All of This Matter?
I took language from these companies’ websites so that I would be accurately describing what they are doing. But regardless of process, they all seem to be doing the same thing; using Qubits to solve problems that would take classical computing millions of years to solve, or not at all, and solving them in minutes.
Why Did I Buy D-Wave?
The CEO of D-Wave Dr. Alan Baratz appeared on CNBC’s “Mad Money” to discuss his company and what is happening in the industry right now. He made five key points that made me realize the importance of Quantum at this time:
At the time they were the only truly commercial quantum company making money.
They solve hard business optimization problems.
They solved a problem, for the first time ever, a real world problem in the area of material simulation (computing properties of magnetic materials), that classical computing could not solve and it was done in minutes.
Quantum computers are very energy efficient. They can perform computations at a fraction of the power required which is beneficial for AI.
Their superconducting chip is more powerful than GPUs.
What is the Future most likely for these Companies?
Since quantum is pretty much in its infancy there is room for plenty of growth. But as the companies start to want to offer diverse options you could see an increase in mergers and acquisitions. For example, Rigetti sells actual computers while D-Wave offers cloud services. If D-Wave is more successful than Rigetti, it might acquire Rigetti or merge to offer both cloud services and actual computers.
Furthermore, the quantum superconducting chips are more powerful than GPUs. This could mean one of these companies could be a buy out candidate for a behemoth like NVIDIA.
So What Is the Play?
I would chose a company that is making money and whose technology seems to be attracting other businesses and establish a small position that you would be willing to hold for at least a year. Remember that these companies are still speculative investments and do not guarantee return even though they have had mass growth in terms of price they are still new to the tech/AI world and could be volatile. Patience is necessary for this type of investment.