UBS has identified several key quantum computing stocks that are leading the industry, with the technology offering “extraordinary potential.”

Quantum Advantage May Arrive In 2030s

The analysts, led by Madeleine Jenkins, highlighted that quantum computing is a fragmented and immature market, with significant potential in areas such as molecular simulation, optimization, AI, and cryptography, reported CNBC.

The report also noted the recent “meaningful breakthroughs” in the quantum space despite the slow pace. UBS predicts that the era of quantum advantage, where quantum significantly outperforms classical systems, could arrive as early as the 2030s.

UBS noted that qubits, the building blocks of quantum computing, can be made in multiple ways, with superconducting and trapped-ion qubits leading the field. This narrows the quantum computing race to a small number of companies poised to adopt and advance the technology across various industries.

UBS Flags Risk In Pure-Play Quantum

The analysts called Alphabet Inc.’s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google the "pioneer" and leader in quantum computing, while Microsoft Corp. (NASDAQ:MSFT) and Amazon.com Inc. (NASDAQ:AMZN) are more diversified players.

However, UBS says that pure-play players in quantum technology, such as IonQ Inc. (NYSE:IONQ), D-Wave Quantum Inc. (NYSE:QBTS), and Rigetti Computing Inc. (NASDAQ:RGTI) are far more volatile than the broader market.

Over the past year, IonQ, D-Wave Quantum, and Rigetti surged 12.12%, 358.35% and 83.26%, respectively, as per data from Benzinga Pro.

Quantum Sector Heats Up Fast

In a recent interview, Alphabet CEO Sundar Pichai likened the current state of quantum computing to where AI was five years ago, suggesting an imminent “very exciting phase in quantum.”

Meanwhile, smaller companies in the quantum computing space have also been making waves. Quantum Computing Inc. (NASDAQ:QUBT) recently saw its stock rise after an analyst identified multiple ways for the company to win in the quantum and opto-electronics space.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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