Top Quantum Computing Stocks and ETFs to Watch for Future Growth
Quantum Computing: A Transformative Opportunity for Investors
The world is approaching a major technological breakthrough with the rise of quantum computing. According to research from the Boston Consulting Group, the quantum computing market could reach a value between $90 billion and $170 billion by 2040. Quantum computers utilize the principles of quantum mechanics, offering capabilities that far surpass even today’s best supercomputers.
Given this enormous potential, investors are increasingly looking for opportunities in this sector. However, most emerging quantum computing stocks remain highly speculative due to the current small market size. Instead of focusing on risky startups, investors may want to consider established companies and diversified funds that provide exposure to quantum technologies without excessive risk.
Below are three strong options for those looking to invest in the future of quantum computing:
1. Microsoft: A Tech Giant Positioned for the Quantum Era
Microsoft (NASDAQ: MSFT) is no stranger to technological revolutions, and it is actively advancing its quantum computing efforts. Recently, Microsoft introduced Majorana 1, the world’s first quantum chip built with a topological core—a breakthrough in quantum research.
Microsoft’s Azure platform is already the world’s second-largest cloud provider, and the company has deep expertise in artificial intelligence (AI) and software development. This positions Microsoft to benefit from both the creation and implementation of quantum computing solutions across its business lines, including potentially powering future cloud data centers with quantum technology.
With a market capitalization of $3.5 trillion, Microsoft offers stability alongside growth. Analysts project earnings growth of 15% annually for the next few years, and the company has consistently increased its dividend payout for 23 consecutive years. For investors seeking low-risk exposure to quantum advancements, Microsoft is an excellent choice.
2. IBM: A Legacy Innovator with Strong Quantum Credentials
Although IBM (NYSE: IBM) is no longer the universal tech leader it was decades ago, the company has firmly established itself in quantum computing. IBM began offering cloud-based quantum computing nearly ten years ago and now boasts more than 13 quantum computer systems with at least 100 qubits.
The company has generated approximately $1 billion in cumulative revenue from its quantum business, extending well beyond newer entrants such as IonQ. IBM’s expertise in AI, cloud, and quantum solutions allows it to provide integrated services to its enterprise clients.
Furthermore, IBM offers a reliable dividend, currently yielding around 2.5%, and has raised its dividend for 29 consecutive years. This makes IBM a compelling option for dividend-focused investors who want exposure to quantum technology.
3. The Defiance Quantum ETF (QTUM): Broad, Diversified Exposure
Practical quantum computing may still be several years away, and the landscape could change considerably as the technology matures. To navigate this uncertainty, investors can opt for diversified exposure through an exchange-traded fund (ETF). One such option is the Defiance Quantum ETF (NYSEARCA: QTUM), which focuses on companies innovating in quantum and AI technologies.
QTUM comprises 73 holdings, including leading technology and quantum players from around the globe. By diversifying across U.S. and international firms, investors benefit from broader access to potential industry leaders, including those not listed on major U.S. exchanges or based in foreign markets where access may be limited.
Investing through an ETF minimizes individual company risk and ensures exposure to a wide sweep of companies at the forefront of quantum computing and AI innovation. As the field evolves, this approach increases the likelihood of owning stakes in future winners.
This content is for informational purposes only and does not constitute financial advice.
