5 Best Quantum Computing Stocks to Buy for 2023

How to obtain the best return in the ever-changing financial market is a concern of all investors, and quantum computing may be the answer. With breakthroughs in quantum computing in recent years, the superiority of quantum computing has been gradually verified. The industry and academia have increased their investment to promote quantum computing into a new stage of practical advantage exploration.

What Is Quantum Computing?

Quantum computing is a novel processing paradigm that uses quantum mechanical principles to control quantum information units. Computer scientists, physicists, and mathematicians have all contributed to the development of quantum computing, which employs quantum mechanics to do calculations exponentially quicker than classical computers. Quantum computing encompasses both hardware study and software advancement. Compared with the traditional general-purpose computer, its theoretical model is a general-purpose Turing machine; for a general-purpose quantum computer, its theoretical model is a general-purpose Turing machine reinterpreted by the laws of quantum mechanics. Quantum computers, from the perspective of computable issues, can only solve problems that classical computers can solve. However, in terms of computational efficiency, due to the superposition of quantum mechanics, some known quantum algorithms are faster than traditional general-purpose computers in processing problems. 

When classical computers are unable to handle an issue, quantum computers can apply the principles of quantum mechanics to find a solution. Some types of problems can be solved by quantum computers far more quickly than by classical computers because they take advantage of quantum mechanical features like superposition and quantum interference. Some application areas where quantum computers could provide such speed improvements include machine learning (ML), optimization, and simulation of physical systems. Ultimate use cases could be portfolio optimization in finance, the simulation of chemical systems, and solving problems that are currently beyond the reach of even the most powerful supercomputers on the market.

Why Invest in Quantum Computing?

The Uniqueness of Quantum Computing

When scientists and engineers run into problems, they turn to supercomputers. These very large classical computers typically have thousands of classical CPU and GPU cores. However, some problems are difficult to solve, even with supercomputers.

If supercomputers can't do anything, it's probably because this large conventional machine is being asked to solve a highly complex problem. What makes classical computers powerless is that highly complex problems often consist of many variables interacting in complex ways. Modeling the behavior of individual atoms in molecules is a complex problem because all the different electrons interact. For example, selecting the ideal route for hundreds of tankers in the global shipping network is an extremely complex task.

Wide Range of Application Fields

Quantum computing is a method that can use multidimensional computing spaces to find patterns in billions of data points to solve extremely complex problems. It takes up far less space than a supercomputer, yet it can address issues that standard supercomputers cannot handle. Quantum algorithms take a novel approach to solving these complex problems by creating multidimensional spaces in which patterns emerge that link individual data points. This mode is likely to be the combination of folds that requires the least energy for a protein folding problem. This folding combination is the solution to the problem. Classical computers cannot create these computational spaces, so they cannot find these patterns. And for the protein problem, early quantum algorithms can find folding patterns in a new and more efficient way without the painstaking checking routines of classical computers. As quantum hardware scales up and these algorithms improve, they could solve protein folding problems that are too complex for any supercomputer.

Quantum computers are also well-suited for solving optimization problems, as they can quickly process large numbers of potential solutions. For example, Airbus is applying it to help figure out the most fuel-efficient ascent and descent routes for planes, while Volkswagen has unveiled a service that calculates the best routes for city buses and taxis to minimize congestion. Some researchers also believe that quantum computers could be used to speed up the development of artificial intelligence.

For example, renewable energy systems must continue to improve to become more efficient and cheaper before they can fully replace fossil fuels. Researchers rely on quantum computing to simulate complex compounds and reactions as they search for new materials to improve battery technology.

Deep space exploration requires continuous refinement of materials to find materials suitable for increasingly harsh operating environments. Without quantum computing, it would take months of the hustle and bustle in the lab to complete the testing cycle, moving at a snail's pace.

Even mundane industries that manufacture everyday products could benefit from the power of quantum computing. From logistics routing to factory assembly planning to schedule optimization, these industries can greatly improve efficiency by implementing quantum algorithms. This, in turn, saves a lot of money and creates economies of scale.

Simulating the behavior of matter in its molecular state is one of the most exciting potential uses of quantum computers. Automakers like Volkswagen and Daimler are using quantum computers to simulate the chemical composition of electric vehicle batteries, hoping it can help find new ways to improve their performance. And pharmaceutical companies use them to analyze and compare compounds that could lead to new drugs. In fact, innovation relies on technology's ability to keep up with increasing demands. 

Advantages of Quantum Computing

Quantum computing, with its large-scale processing capabilities, can offer significant advantages such as:

1. Higher precision

With the ability to create multi-dimensional spaces and accommodate multiple layers of relationships in data sets, quantum computing can perform tasks that supercomputers cannot handle.

2. More Comprehensive Modeling Options

Quantum computers will use the same physical rules as atoms, making the analysis of complex natural systems more feasible.

3. Faster

Quantum computing can be scaled up to process large amounts of data.

4. Low Power Consumption

When superconductors are used to process data, quantum computing systems also consume less electricity.

5. Low-risk And Low Cost

With the ability to run multiple simulations simultaneously, quantum computing could replace much laboratory-based research, reducing the risks inherent in conducting experiments in physical labs while dramatically reducing costs.

6. No Extensive Training Is Required

Quantum computing does not use special coding languages and therefore does not require special coding skills.

Best Quantum Computing Stocks to Invest in

1. Microsoft Corp (NASDAQ: MSFT)

Microsoft is the second-largest quantum computing patent holder. Microsoft has yet to release a full quantum computer, but it is investing in different layers of the quantum computing stack - including systems for qubit control.

Microsoft has launched a quantum computing service on its own cloud platform. Microsoft is taking a more challenging but ultimately more promising approach to scaling quantum computing - topological qubits. In theory, it would be more stable than qubits produced by existing methods without sacrificing size or speed. This discovery provides the cornerstone of our approach to scaling quantum computers, taking Microsoft a critical step toward its goal of creating quantum machines on Azure.

Microsoft is committed to enabling quantum computing opportunities for researchers to solve the world's most complex scientific problems in hours or days instead of the years that classical computing takes. Microsoft provides its Azure cloud platform access to quantum computers from numerous manufacturers. The company is also developing its own quantum hardware, and its venture capital arm has invested in PsiQuantum, the world's best-funded quantum computing start-up. Microsoft's quantum positioning suggests it is doubling down on serving the enterprise. Microsoft has all the building blocks of a topological qubit—a new, unique qubit that's faster, smaller, and more reliable than other qubits. Over time, topological qubits will power Microsoft's fully scalable, highly secure, next-generation quantum computers.

Microsoft currently does not offer quantum hardware. But it works with several quantum hardware manufacturers - including IonQ, Quantum Circuits, Rigetti, and Honeywell (now Quantinuum). It also has access to Toshiba's quantum-inspired `analog bifurcation machine '' for solving optimization problems and 1QBit's 1cloud software.

Microsoft is building the Azure Quantum platform around enterprise use cases. For example, Microsoft partnered with KPMG to deploy the accounting firm's "quantum-inspired optimization" services - services that run on classical machines but use quantum simulations to outperform conventional methods - for the accounting firm.

2. NVIDIA Corporation (NASDAQ: NVDA)

In the development of quantum computing, Nvidia (Nvidia) claims to have reached the heights that semiconductor giants should have. Therefore, its external statement calls itself the degree that a quantum computing company should be. Nvidia has been making waves in the industry by developing products like the cuQuantum SDK for quantum simulations. Nvidia is showing that it intends to pursue the quantum market opportunity as much as any pure-play quantum company or growing classical computing company.

The GPU architecture launched by Nvidia is Ampere (ampere). Nvidia's latest new GPU architecture is named after Grace Hopper, a pioneer in the American computer programming community, which shows that it hopes that the new architecture will lead the future of computing. GPU is a good choice to realize hybrid quantum computing compared to CPU. Because GPUs can shorten the execution time of traditional jobs and drastically reduce the communication latency between classical and quantum computers, which is the main bottleneck for hybrid quantum jobs today.

At present, Nvidia is building the first AI factory, "model house" EOS. According to reports, the EOS is equipped with 18 DGX PODs, 576 DGX H100s, and 4608 H100GPUs. In the field of traditional scientific computing, EOS has a speed of 275PetaFLOPS, which is 1.4 times faster than Summit, the fastest supercomputer in the United States driven by A100. In terms of AI, the AI processing speed of EOS is 18.4ExaFLOPS, which is four times faster than Fugaku in Japan, the world's largest supercomputer.

The large model is also another dimension in that Nvidia has invested heavily in recent years. In addition to cooperating with Microsoft to develop large-scale models, Nvidia has recently teamed up with a number of scientific research institutions, including Caltech and Berkeley Lab, to develop the FourCastNet weather forecast AI model. Nvidia has indeed begun to replicate its success in AI in the field of quantum computing. Start with the software closest to the developer, lower the threshold for developers to use it, and help developers in the quantum computing field to solve problems and create value. Once researchers and users of quantum computing choose Nvidia's tools, it will naturally help Nvidia seize the opportunity in the field of quantum computing.

3. IBM Common Stock (NYSE: IBM)

IBM is ready to start realizing quantum-centric supercomputers. The goal is to steadily increase computing power over the next few years, with plans to launch a system with more than 4,000 qubits by 2025. IBM is developing a quantum computer that can handle many different tasks. Dario Gill, senior vice president of IBM and director of IBM Research, said: In theory, 1,000 qubits can be put on a chip today. But the difficulty is that the more qubits there are, the more error-prone the results are, and the less time they can maintain a quantum state to perform calculations.

IBM Osprey ranks first in IBM's quantum processor for the number of qubits, three times as many as the Eagle machine announced last year. IBM has plans to enhance its foundational software in 2023 to further assist developers in bringing together quantum and traditional computing in the cloud. IBM anticipates launching prototypes of quantum software around 2023. The company's goal is to release such applications in machine learning, optimization issues, the natural sciences, and more by 2025. Eventually, the team plans to implement quantum error correction to make up for the quirks inherent to quantum computing. IBM's CONDOR is the world's first general-purpose quantum computer with more than 1,000 qubits., and it will debut in 2023. Still, IBM is steadily increasing its qubit count. IBM expects to build increasingly complex quantum computers over the next few years, starting with those using Condor processors or using multiple Heron processors in parallel.

In order to solve the error correction problem in Osprey, IBM also released an updated version of the supporting Qismat Runtime software at the same time. In order to prove that IBM has the technical advantages to ensure the security of quantum computers, IBM and Vodafone have also reached a cooperation agreement to jointly find solutions to apply IBM's quantum-safe cryptography in Vodafone's infrastructure.

On the whole, IBM's new Osprey chip has advantages in qubits and has made all-around improvements in refrigeration, electronic control equipment, and wiring. As the scale of IBM's quantum system continues to expand, it is expected to reach the stated goal of more qubits in the future.

4. Tencent Holdings ADR (OTCMKTS: TCEHY)

Tencent is one of the first technology giants in China to deploy quantum computing. As early as 2018, Tencent proposed the "ABC2.0" technology layout (artificial intelligence, Robotics, quantum computing) and established the Tencent Quantum Laboratory with Professor Zhang Shengyu and Dr. Ge Ling as core members. The laboratory aims to explore the basic theory of quantum computing and quantum system simulation, as well as its application in related application fields and industries. Tencent has integrated software and hardware into its new quantum control micro-architecture, which is a key step towards building a full-stack quantum computer.

In recent years, Tencent has continued to increase investment in basic scientific research and has built a new ABC core technology layout of artificial intelligence (AI), big data (Big Data), and cloud computing (Cloud Computing). Fields such as 5G and edge computing are making frequent moves to explore the possible positive impact of cutting-edge technologies on industrial development.

In the field of quantum computing, Tencent has also accelerated its deployment. On the one hand, Tencent is exploring the application of quantum computing technology to enterprise development and finding scenarios that can be combined with commercial applications so that quantum computing can actually promote industrial development. On the other hand, Tencent's attitude towards ecological partners is also more open. 

In the frequency domain of new drug research and development, Tencent has cooperated with universities and enterprises to carry out a series of research activities. Life science and medicinal chemistry are one of the main application directions of Tencent A1 Lab and Tencent Quantum Lab. The cooperation with universities ensures that the talent stabilization project of scientific research projects has potential application value, and at the same time, research funds can be more stable for a longer period of time. In practice, Tencent Quantum Lab has extensive cooperation with Tencent's internal teams, academia, and other quantum institutions in the industry. Find opportunities for practical applications in various industries and jointly promote the development of quantum science research and applications.

5. IONQ Inc (NYSE: IONQ)

Founded in 2015, IonQ is headquartered in College Park, Maryland, USA. The research team was hatched from the University of Maryland and Duke University. Co-founder and CTO Jusang Kim (Jin Zhengshang) is a professor of electrical and computer engineering and physics at Duke University, specializing in quantum computing. IonQ is currently developing full-stack quantum computing products based on the ion trap technology route, including software and hardware.

On the software side, describing the capabilities of its quantum computing system, IonQ noted that the quantum computer-powered system broke all previous records with 32 perfect qubits1. Its hardware has perfect atomic clock qubits and all operations with random access, enabling efficient software compilation for various applications.

IonQ Aria is currently in private beta for customers and is already in commercial use. For example, the company has worked with customers in the automotive industry to explore more efficient battery chemistries. Work with financial services to understand stock market correlations.

IonQ, an American quantum computing start-up company, and Hyundai Motor Company announced cooperation to use quantum computing to simulate the chemical reaction of lithium batteries to promote battery innovation for electric vehicles. IonQ and Hyundai will jointly develop a new variational quantum eigenvalue solver (VQE) algorithm to study lithium compounds and their chemical reactions in battery chemistry. Among them, IonQ will use its expertise in quantum computing, and Hyundai Motor will use its expertise in lithium batteries to jointly develop the most advanced battery chemistry model on a quantum computer. In the coming months, the quantum computer will further improve its performance and open up to more customers.

How to Invest in Quantum Computing Stocks?

You can trade in quantum computing stocks via CFDs.

CFD trading is also a comprehensive trading platform for commodities, stock index futures, digital currencies, foreign exchange, and stocks. We can control the leverage ratio according to different products. For example, if we invest in gold equivalent to 100,000 US dollars, if we use 0 leverage, the investor will remit 100,000 US dollars. However, if the investor's principal is small, he can also use a leverage of up to 100 times, so buying and selling 100,000 US dollars in euros only needs to invest 1,000 US dollars.

How to Buy Quantum Computing Stocks Through CFD? Take TOPONE Markets As An Example.

TOPONE Markets is one of the best trading service providers for online investment. Investors can trade all of the common products on the international financial market with diverse leverage through TOPONE Markets. 

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Best Quantum Computing Stocks: Final Thoughts

Seeing this, I believe that everyone should and can basically understand quantum computing and the huge impact and changes that quantum computers can bring to us. Therefore, quantum computing has epoch-making significance. The best quantum computing stocks have been presented above, and these are companies at the forefront of this exciting and booming industry. As such, they offer investors a great way to participate in this growing industry and potentially profit from the return on their investment. If you're considering investing in any of these stocks, be sure to do your own research first and consult a financial advisor about your current financial situation.