Top Quantum Computing Stocks: U.S. and Japan Picks for Investors

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Introduction.

The field of quantum computing is once again attracting a great deal of attention.
Quantum computers have long been one of the hot topics in the stock market, but in the past there has been a cycle of anticipation followed by waning attention. Recently, however, it has begun to attract attention again as technological progress and a path to practical application have begun to emerge.

Specifically, the emergence of examples of sales growth among companies seeking to use quantum computers commercially, coupled with the rapid development of AI technology, has led to expectations that quantum computers will be a growth area for the next generation. Quantum computers have the potential to efficiently solve complex problems that are difficult to solve with conventional computers, and are expected to find applications in a variety of fields in the future.

In this section, I will pick out stocks with advanced technology and high growth potential that I have personally investigated in selecting quantum computer-related stocks.

Why is the quantum computer market attracting so much attention now?

The quantum computer market is attracting attention because of multiple factors, including technological innovation, progress in practical applications, and projected expansion in the size of the economy.

Dramatic Improvement in Computational Power

Quantum computers have the potential to solve complex problems at high speeds that are difficult to handle with conventional computers.
Particularly,It is expected to bring innovation in computationally intensive fields such as cryptanalysis, molecular simulation, and logistics optimization.
It has the potential to produce results that exceed the limits of current technology in areas such as new drug development, materials science, and supply chain efficiency.

Progress of practical application in industry

Major companies such as IBM, Google, and Microsoft have begun to research and develop quantum computers and offer prototypes and commercial cloud services.
The use of this technology in diverse fields, including finance, medicine, and logistics, has the potential to transform traditional business models.
For example, risk calculation using quantum computers will fundamentally change portfolio management in the financial industry, while logistics optimization will improve the efficiency of delivery networks.

Driving force behind huge investments

Another major factor is that governments and companies are accelerating their massive investments in quantum technology.
The development of quantum technology as a national project is underway, just as the Australian government and the state of Queensland are working with PsiQuantum of the United States on a project to develop a quantum computer.
Also,In the U.S., the government is focusing its support on the quantum field as a national strategy and strengthening cooperation with research institutes, universities, and companies.Quantum technology is becoming increasingly popular throughout industry.

Rapid market expansion forecast

In market research,Quantum Computing Market Projected to Reach US$12.6 Billion by 2032The number of companies in the region is estimated to be about 1.5 million. This corresponds to an average annual growth rate of 34.81 TP3T, indicating that the diffusion of related technologies and services is expected to be rapid.
This high growth rate reflects the potential for quantum computers to be applied in a wide range of fields as a next-generation fundamental technology.

New possibilities through integration with generative AI

The increasing integration of quantum computers and generative AI is expected to enable the analysis of large data sets and advanced predictive algorithms that were previously impossible.
This integration could not only revolutionize business strategies and economic models, but also contribute to the advancement of, for example, climate change prediction and personalized medicine.

Long-term social and industrial impact

The full commercialization of quantum computers will bring efficiency and innovation in many industries, including medicine, energy, manufacturing, and finance.
The development of quantum communication technology will also affect the field of security, improving cryptography and network security.
Like this,Quantum computers are not just a technological innovation, but have the potential to change the entire foundation of society.

These factors are intertwined, and the quantum computer market is currently the focus of worldwide attention. Although technical challenges remain, expectations are high that it is the key to the future.

What is a quantum computer? What is different from a conventional computer?

A quantum computer is a next-generation computer that uses the principles of quantum mechanics to perform calculations. The biggest difference from conventional computers is in the way they process information.

Main differences from conventional computers

• How to express information
  Conventional computers process information in bits (0s or 1s). Quantum computers, on the other hand, use quantum bits (qubits). Cubits allow "superposition," in which the states of 0 and 1 are held simultaneously.
• Parallel computing power
  The superposition property allows quantum computers to compute multiple states simultaneously. This property greatly speeds up problems that require sequential processing in conventional computers.
• Entanglement (quantum entanglement)
  Quantum entanglement allows multiple cue bits to interact with each other and process large amounts of information simultaneously in a single operation. This is a property that does not exist in conventional computers.
• Calculation speed scaling
  While the processing power of a conventional computer increases in proportion to the number of bits, the computational power of a quantum computer increases exponentially with each increase in the number of qubits.

Specific Areas of Application

The properties of quantum computers have the potential to overwhelm conventional computers in the following areas

• cryptanalysis: The ability to efficiently break public key cryptography.
• Molecular Simulation: Accelerate the development of new drugs and materials.
• optimization problem: Optimization of logistics and financial portfolio management.
• AI and Machine Learning: Analysis of complex data sets.

Challenges and Limitations

Current quantum computers have the following challenges

• Quantum bit stability: Errors are likely to occur.
• scalability: Building a large-scale quantum processor is technically difficult.
• Limited scope of application: There are only a limited number of fields suitable for practical application.

Quantum computers are expected to evolve not as replacements for conventional computers, but as "complementary entities" dedicated to specific applications.
Future technological developments are expected to overcome these issues and lead to an even wider range of applications.

How much growth is projected for the quantum computer market?

The quantum computer market is expected to grow rapidly.
According to a report by Fortune Business Insights,The market size in 2024 was about $1,160.1 million and will reach about $12,620.7 million by 2032It is considered to be a
This corresponds to a compound annual growth rate (CAGR) of 34.81 TP3TDo.

In the Japanese market, according to a study by Spherical Insights,Projected to expand at a CAGR of 35.81 TP3T between 2022 and 2032, reaching approximately $2,280.89 million in 2032The company has been

These growth projections are attributed to the advancement of quantum computer technology and its expanding application in diverse industrial fields.
In particular, it is expected to be used in the fields of finance, medicine, logistics, and energy, and is attracting increasing investment from governments and companies.

What are the different types of quantum computers?

Quantum types of quantum computers are classified according to the physical implementation method used to realize the qubits (cubits). Below are the main types.

superconducting quantum bit

A method of constructing a qubit using a superconducting circuit. By controlling the current and magnetic field in a superconducting state, a quantum state is generated.

• feature: Fast gate operation and relatively stable quantum states.
• Adoption examples: IBM, Google, Rigetti Computing.

Ion Trap Quantum Bits

A method of trapping ions in an electromagnetic field and manipulating their quantum state with a laser beam.

• feature: High accuracy and long coherence time (duration of quantum state).
• Adoption examplesIonQ, Honeywell, Inc.

photonic qubit

A method of encoding quantum information using photons (light particles).

• feature: No low temperature is required and can be applied to long-distance communication.
• Adoption examples: Xanadu (Xanadu: unlisted), PsiQuantum (PsiQuantum: unlisted).

topological qubit

A method of protecting quantum states with topology (geometric properties). It is believed to reduce the error rate, but is difficult to achieve.

• feature: Theoretically, very high fault tolerance.
• Adoption examples: Microsoft (under development).

nuclear spin qubit

A method of encoding quantum information using the spin of atomic nuclei.

• feature: Extremely long coherence time, but slow operation.
• Adoption examples: Research stage.

semiconductor quantum bit

A method of generating quantum states by controlling the spin and orbital of electrons using semiconductor materials.

• feature: High affinity with current semiconductor technology.
• Adoption examples: Intel, Toshiba.

Diamond Nitrogen Vacancy (NV Center) Quantum Bits

A method using the defect structure of nitrogen impurities in diamond.

• feature: Can be operated at room temperature and can be applied to quantum sensing.
• Adoption examples: Focused on applications in sensing technology.

molecular quantum bit

A method that uses the spin state of electrons and nuclei in molecules.

• feature: Chemically designable, molecular structure can be controlled.
• Adoption examples: Initial research phase.

Different types of quantum computers have different suitable application fields depending on their characteristics and advantages.
At present, superconducting and ion-trap qubits are the mainstream, but new approaches such as topological qubits are also attracting attention as promising future technologies.

Quantum computer-related stocks (U.S. stocks)

While large stocks such as IBM, Alphabet (Google), Microsoft, and others are examples of quantum computer-related stocks, this section focuses on small- and mid-cap stocks and includes those that I personally pay attention to.

IonQ [IONQ].

Corporate Strengths and Characteristics

IonQis a company that promotes the development and commercialization of quantum computers based on ion trap technology.
The company's quantum computers are offered on major cloud platforms, including Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, making them accessible to a wide range of users. IonQ also offers its own cloud services to help spread the use of quantum computing.

Reasons for Attracting Attention

IonQ achieved sales of $5.5 million in the second quarter of 2023, a significant growth of 11% over the same period last year. In addition, cumulative sales for the first half of 2023 exceeded $32 million, bringing the company closer to its goal of $100 million in cumulative sales in the first three years of commercialization.
On the technology side, the company aims to achieve its 2023 target of 29 algorithmic qubits (#AQ) seven months ahead of schedule and to realize #AQ 64 systems by the end of 2025.

Financial condition and growth potential

In the third quarter of 2024, the company exceeded expectations with sales of $12.4 million. The company also has an order backlog of $63.5 million, the majority of which is from a $54.5 million contract with the U.S. Air Force Research Laboratory (AFRL); full-year 2024 sales forecasts have been raised to $38.5 million-$42.5 million, with continued strong growth expected.

Challenges and Prospects

IonQ has made significant progress in the commercialization and technological development of quantum computers, but in an increasingly competitive market environment, continued innovation and market expansion are needed.
In particular, improving the accuracy of qubits and ensuring scalability are future issues.
However, the company has established a stable revenue base through contracts with government agencies and major corporations, and is expected to grow in the future.

IONQ: Quantum Computing Growth and Stock Potential - MiFsee

Until now, quantum computer-related issues have often been the focus of attention in the stock market. In particular, the possibility of the next breakthrough phase in the field of quantum computers is increasing as AI technology evolves more rapidly than ever before.

mifsee.com

Rigetti Computing [RGTI].

Corporate Strengths and Characteristics

Righetti (RGTI) is a full-stack quantum computing company that develops and manufactures its own quantum processors based on superconducting qubits.
The company's quantum computers are offered in the cloud and accessible to businesses and research institutions. Through its proprietary Quantum Cloud Service (QCS) platform, the company integrates quantum computing with traditional classical computing to provide a high-performance computing environment.

Reasons for Attracting Attention

Righetti (RGTI) has developed the industry's first multi-chip quantum processor for scalable quantum computing systems, which is expected to expand the number of qubits and increase computing power.
In addition, the company offers a diversified range of services, including sales of quantum processing units (QPUs) and custom computing components, as well as development contracts.

Financial condition and growth potential

As of November 12, 2024, the company had a market capitalization of approximately $284.95 million and approximately 191.24 million shares outstanding. The company expects its earnings to grow in the future as the quantum computing market grows. However, profitability is an issue at this time, and both technology development and market development efforts are required to ensure sustainable growth.

D-Wave Systems [QBTS

Corporate Strengths and Characteristics

D-Wave Quantum Inc. (QBTS) is a developer and provider of quantum annealing quantum computers.
The company's quantum system, Advantage, is designed for business and specializes in solving complex combinatorial optimization problems.
The company also provides real-time quantum computing access through Leap, a cloud-based quantum service that enables companies and developers to build and run quantum applications.

Reasons for Attracting Attention

D-Wave (QBTS) is known as a pioneer in the commercialization of quantum annealing technology and has collaborated with leading companies such as Volkswagen, Denso, Toyota, and NEC to develop quantum applications in diverse fields including logistics optimization, scheduling, and drug discovery.
In addition, a new hybrid quantum solver was announced in June 2024, enhancing the ability to solve nonlinear programs.

Financial condition and growth potential

As of November 16, 2024, the share price was $1.64 and the market capitalization was approximately $252.26 million.
The company expects its revenues to grow as the quantum computing market grows.
However, profitability is an issue at this time, and efforts in both technology development and market development are required for sustainable growth.

Challenges and Prospects

D-Wave has played a pioneering role in the commercialization of quantum annealing technology, but in an increasingly competitive market environment, there is a need to continue to drive innovation and market expansion.
In particular, improving the accuracy of qubits and ensuring scalability are future issues.

Arqit Quantum [ARQQQ].

Corporate Strengths and Characteristics

Arquit Quantum (ARQQ) is a UK-based cybersecurity technology company that provides quantum encryption services.
The company's flagship product, QuantumCloud, is a platform that protects communication links between network devices from quantum computer attacks.
Devices download a lightweight software agent, which works with other devices to generate encryption keys. The platform can create unlimited keys with unlimited group sizes and regulate the secure ingress and egress of devices within the group.

Reasons for Attracting Attention

ARQQQ is developing advanced encryption technology to counter the threat of quantum computers and is noted for its innovation in the field of cybersecurity.
The company has formed partnerships with companies such as Sumitomo Corporation and Virgin Orbit to accelerate the practical application and market deployment of quantum cryptography.
The company also plans to launch a demonstration satellite in 2023, with a view to applying quantum encryption technology in space.

Financial condition and growth potential

The company expects its earnings to increase in the future as the market for quantum encryption technology expands, but at present profitability is an issue, and the company must work on both technology development and market development in order to achieve sustainable growth.

Challenges and Prospects

Arcit has played a pioneering role in the commercialization of quantum encryption technology, but in an increasingly competitive market environment, continued innovation and market expansion must be pursued. In particular, the practical application and scalability of quantum key delivery (QKD) will be a future challenge.

Quantum Computing [QUBT].

Corporate Strengths and Characteristics

Quantum Computing (QCi: QUBT) is a provider of quantum computing solutions based on quantum optics and nanophotonics technologies.
The company's products are characterized by room temperature operation, low power consumption, and low environmental impact. They also have a wide range of applications in areas such as quantum intelligence, cyber security, sensing and imaging solutions.

Reasons for Attracting Attention

Quantum Computing (QCi: QUBT) leverages nanophotonics-based quantum entropy to provide a solution that requires little or no training and can be used anywhere.
The company's core Dirac series of technologies provides solutions to binary-based and integer-based optimization problems.
In addition, a series of reservoir photonic computers (intelligence), reprogrammable and non-reproducible quantum random number generators (cybersecurity), lidar and vibrometer (sensing) products, and other specific quantum applications.

Financial condition and growth potential

According to the financial results for the third quarter of 2024, the company recorded total revenues of $74,893, an increase of 48.491 TP3T over the previous quarter. However, the net loss was approximately $8.31 million, making profitability a challenge. The company expects to increase its earnings in the future as the quantum computing market grows, but both technology development and market development efforts are required to ensure sustainable growth.

Companies supplying quantum computer components and related technologies

Honeywell [HON].

Corporate Strengths and Characteristics

Honeywell is an American multinational company that manufactures and sells electronic control systems and automation equipment. The company uses technology in a wide variety of fields, including aerospace, construction, industry, logistics, and workers, to create a smarter, safer, and more sustainable world.

Quantum Computing Initiatives

Honeywell is also active in the field of quantum computing. The company's quantum computers are based on trapped-ion technology and boast high performance.
In 2021, the company merged with Cambridge Quantum Computing to form the world's largest stand-alone quantum computing company.
This new company provides leadership in both hardware and software for quantum computers.

Reasons for Attracting Attention

Honeywell is also using quantum computing technology to enhance cybersecurity.
The company offers solutions to enhance data security for utilities by utilizing cryptographic keys enhanced by quantum computers. The company provides enhanced protection against cyber threats in smart meters for gas, water, and electric utilities.

Financial condition and growth potential

Honeywell is one of the Fortune 100 companies and a giant with approximately 130,000 employees. The company's diversified operations and technological innovations have allowed it to maintain steady growth.
Aggressive investments and efforts in the field of quantum computing are also factors that will support future growth.

What ETFs are available to invest in the quantum computer sector?

When considering investing in the quantum computing field, one ETF that can invest in a wide range of related companies is the Defiance Quantum ETF (ticker: QTUM).
QTUM is an ETF that invests in companies active in the areas of quantum computing, machine learning, artificial intelligence (AI), big data, and cloud computing.

Main Features

• Number of components Approximately 70 companies
• Expense Ratio 0.40%
• Main Investment Targets Companies active in quantum computer research and development, related hardware, data connectivity, cooling systems, big data, machine learning, etc.

Main Constituents

• Baidu Inc (BIDU)
• ASUSTeK Computer (2357 TT)
• Alphabet Inc (GOOGL)
• NEC Corp (6701 JP)
• IonQ Inc (IONQ)
• Microsoft Corp (MSFT)
• Blackberry Ltd (BB)
• Taiwan Semiconductor Manufacturing (TSM)
• Nokia Corp (NOK)
• Qualcomm Inc (QCOM)

These companies are engaged in research and development of quantum computing technology and related fields, and it is possible to diversify investments in these companies through QTUM. However, QTUM is not only investing in quantum computing-related companies, but also in AI, big data, cloud computing, and other areas. However, it is important to understand that QTUM invests not only in quantum computing-related companies, but also in AI, big data, cloud computing, and other areas.

Quantum computer-related stocks (Japanese stocks)

Although we have very little invested in Japanese stocks, we feel that these companies are worth watching in the quantum computing arena.

QD Laser [6613].

Corporate Strengths and Characteristics

QD Laser is a company that develops, manufactures, and sells semiconductor lasers and retinal scanning laser eyewear. In particular, the RETISSA series, which projects images directly onto the retina, has attracted attention as an assistive device for the visually impaired.

Relevance to Quantum Computing

The company's semiconductor laser technology is the foundation for the development of quantum dot lasers. Quantum dot lasers are expected to be applied as a light source for quantum computing, and the company's technology may contribute to the development of quantum computers.

Challenges and Prospects

The key to future growth for QD lasers will be the expansion of the market for devices for the visually impaired and the development of applications for quantum dot lasers. In particular, if the technology is applied in the field of quantum computing, the company's technological capabilities may be further recognized.

Stock Price (6613) Chart (Yahoo! JAPAN Finance)

Fixed Stars [3687].

Corporate Strengths and Characteristics

Fixstars is a company specializing in high-speed software development to maximize computer performance.
In particular, the company focuses on multi-core processor-related business, providing software acceleration services for a variety of hardware, including CPUs, GPUs, and FPGAs.

Quantum Computing Initiatives

The company is also actively entering the quantum computing field: in 2017, it partnered with D-Wave Systems, Japan's first commercial provider of quantum annealing-based quantum computers, to promote the application of quantum annealing technology. From 2021, the company also offers a quantum annealing cloud, Fixstars Amplify, which provides a GPU-based high-performance computing platform that is interoperable with quantum annealing.

Reasons for Attracting Attention

Fixed Stars is attracting attention as a company that is leading the way in the commercial use and social implementation of quantum computing. Quantum computing is expected to be used in diverse fields such as logistics, manufacturing, transportation, communications, and finance, and the company's technology and services are contributing to solving issues in these fields.

Financial condition and growth potential

The company expects its earnings to increase in the future as the quantum computing market grows. In particular, the company expects to secure new sources of revenue by providing services that utilize quantum annealing technology.

Stock Price (3687) Chart (Yahoo! JAPAN Finance)

Brainpad [3655].

Corporate Strengths and Characteristics

Brainpad is a company specializing in promoting data utilization and helping companies with their digital transformation (DX) by providing data analytics and AI solutions.
In particular, the company has extensive experience in the fields of data mining and machine learning, optimizing the use of data in a diverse range of industries. 

Quantum Computing Initiatives

The company is also actively engaged in research and development of quantum computing technology.
In 2017, he published an explanatory article on quantum annealing on his official blog, Platinum Data Blog, providing information on the basics and applications of quantum computing.
The company also holds regular study sessions to share the latest technological knowledge both internally and externally, and holds seminars with experts in quantum computing. 

Reasons for Attracting Attention

In addition to providing data analysis and AI solutions, Brainpad is notable for its ongoing research and development of quantum computing technology.
In particular, the company is deepening its knowledge in the field of quantum computing by disseminating information on the application of quantum annealing technology and holding internal and external study sessions. These efforts demonstrate the company's technological capabilities and advanced nature, and are expected to lead to future growth. 

Stock Price (3655) Chart (Yahoo! JAPAN Finance)

Sec [3741].

Corporate Strengths and Characteristics

SEC is a company that focuses on embedded software development and has experience in fields as diverse as robotics, AI, space, and digital twin.
The company is particularly strong in the development of real-time systems and meets customer needs with its advanced technological capabilities. 

Quantum Computing Initiatives

The company is actively engaged in research and development of software for practical applications of quantum computing. In collaboration with the Center for Quantum Information and Quantum Life Research at Osaka University, the company has developed faster quantum programs and quantum multiprogramming functions, and has begun offering these in its quantum computer cloud service. 

Reasons for Attracting Attention

SEC has been recognized for its advanced efforts in the field of quantum computing. In particular, the development of faster quantum programs and quantum multiprogramming capabilities is considered an important step toward the practical application of quantum computers, and the company's technological capabilities and foresight are attracting attention. 

Stock Price (3741) Chart (Yahoo! JAPAN Finance)

summary

Quantum computers are an investment theme that is attracting a lot of attention for its potential and growth. We have looked in detail at individual stocks, ETFs, and Japanese stocks in which to invest.

Many of the quantum computer-related stocks mentioned in this report are small in size, and actual profit growth is not yet tangible because the technology is still under development. Among them,IONQhas been operating at a loss, but is steadily expanding sales, giving the impression that it is gradually gaining the trust of investors.

On the other hand, stock prices in this field tend to move ahead of the market based on market expectations, and caution should be exercised in investing in this area. In particular, the time it takes for quantum computers to become commercially viable and the technical challenges still exist.

With the rapid development of AI, quantum computer technology is also approaching a feasible stage. With each announcement of high-impact news related to quantum computers, the market is likely to re-evaluate the technology, making it an area to keep an eye on in the future.