Despite a diverse business, this company is still a leader in the emerging technology.
There’s no doubt that artificial intelligence (AI) has gotten the bulk of the attention in the tech world over the past few years, but another rising technology is picking up steam: quantum computing. In simple terms, quantum computing is the use of quantum physics to solve complex problems in ways traditional computers can’t.
One quantum computing company that’s been receiving a lot of attention is IonQ (IONQ +3.67%). Since the start of 2024, the stock is up 280%, even after declining more than 40% since mid-October of this year.
Today’s Change
(3.67%) $1.72
Current Price
$48.65
Key Data Points
Market Cap
$17B
Day’s Range
$45.31 – $48.90
52wk Range
$17.88 – $84.64
Volume
146K
Avg Vol
30M
Gross Margin
-747.41%
Dividend Yield
N/A
Despite its recent slide, many investors believe that IonQ is one of the better pure-play quantum computing stocks in the market. Although I don’t disagree with that sentiment, I believe that investors looking to take advantage of quantum computing advancements are better off investing in Google’s parent company, Alphabet (GOOG +1.46%)(GOOGL +1.21%).
Image source: Alphabet.
A key player in the advancing quantum computing field
Alphabet is one of the most important players in the developing quantum computing industry because of the advancements it has made that other companies can build on to further the technology. Take its quantum chip, Willow, for example.
When Alphabet announced Willow in December 2024, it was a major breakthrough, because it finally proved just how much more powerful quantum computers were than even the most advanced existing computers. Alphabet even said that Willow could perform a computation in less than five minutes that would take one of today’s fastest supercomputers 10 septillion years to do. (A septillion is a 1 followed by 24 zeros.)
A more recent breakthrough is the announcement of Alphabet’s Quantum Echoes algorithm, which it noted was a “big step toward real-world applications for quantum computing.” Instead of proofs-of-concept, the technology is closing in on useful — and verifiable — quantum computing.
Today’s Change
(1.21%) $3.82
Current Price
$319.63
Key Data Points
Market Cap
$3857B
Day’s Range
$314.10 – $321.58
52wk Range
$140.53 – $328.83
Volume
231K
Avg Vol
37M
Gross Margin
59.18%
Dividend Yield
0.26%
Alphabet is a more sure bet than IonQ
Quantum computing itself is still a relatively new technology that hasn’t advanced much outside of research labs. IonQ is an exciting company doing major things, but much of its value proposition rests on technology that’s years away from being commercially viable, and that could be putting it nicely.
In Alphabet’s case, if quantum computing becomes what many expect, the company wins big. However, if it doesn’t, Alphabet’s business remains strong, and it’s still one of the top tech companies in the world.
Investing in Alphabet is investing in the company’s already established business, as well as betting on its ability to continue innovating and making breakthroughs in quantum computing. Not being a pure-play quantum computing company doesn’t diminish its leadership role in bringing the technology to life.
