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Yahoo
5 days ago
- Business
- Yahoo
3 Top Quantum Computing Stocks to Buy in 2025
Amazon and Alphabet are developing internal quantum computing chips. IonQ has sold some of its products to Amazon Web Services and Google Cloud. 10 stocks we like better than IonQ › Quantum computing is a hot topic in the market, and if it proves to be a viable technology over the next decade, it can really shake up the computing industry. However, pinpointing the winner of the quantum computing race is far from certain. No company has set itself apart from another as the go-to solution for quantum computing, so the field is wide open. Investing in quantum computing start-ups right now is akin to biotech investing -- either a company will succeed or it will fail. This all-or-nothing investment approach may suit some investors, but I'm not a huge fan of it. Instead, I'd rather pick some of the big tech companies competing in this race and have a backup plan should quantum computing not work out. From that standpoint, I like Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN). In the start-up realm, I'm a huge fan of IonQ (NYSE: IONQ), although that company is more of a long shot compared to the other two. I think it's key to take a balanced approach in quantum computing, and taking a position in this trio exposes investors to the right amount of risk. Alphabet kicked off the latest quantum computing hype cycle in December 2024 when it announced its Willow chip had completed a computing task in five minutes that would take the most powerful supercomputer 10 septillion years (a 10 with 25 trailing zeros) to perform. Now, this test was rigged in Willow's favor because it tackled a problem that is only solvable using quantum computers, but there are many problems like that in the world, such as logistics networks and weather patterns. There are also massive implications with AI, and quantum computing could be the technology that unlocks AI's maximum potential. Amazon is also working on its own chip, Ocelot. These two companies are heavily pursuing quantum computing because they have already built significant infrastructure to support cloud computing. Cloud computing involves moving workloads online to a cloud computing server, which clients rent from providers like Amazon Web Services (AWS) or Google Cloud. Having rentable quantum computing hardware is key, as they don't want to be caught in the same position as traditional computing. The most popular workhorse computing hardware used in cloud computing is the graphics processing unit (GPU), made by Nvidia (NASDAQ: NVDA). GPUs have become popular devices to run workloads on, and Nvidia has captured a massive chunk of the data center computing market share. As a result, AWS and Google Cloud must continue buying expensive hardware from Nvidia. If they can develop their own quantum computing solutions for the next wave of computing innovation, they won't be subject to a supplier's ecosystem, allowing them to make more money. However, it's possible that these two may fail and lose to a start-up like IonQ. IonQ is a full-stack quantum computing company, meaning it develops the hardware and software that allow quantum computers to run. This is similar to how Nvidia operates with GPUs, and if IonQ's technology proves to perform better than the products Alphabet and Amazon develop in-house, it could be a massive winner. IonQ has already sold some hardware to AWS and Google Cloud, as it is ahead of both competitors in terms of a go-to-market product. Thanks to its all-to-all connectivity within its system, it has achieved an industry-leading 99.9% two-qubit gate fidelity (a measure of how accurate its results are). IonQ has already sold a few units and is slated to launch several more as demand increases. Although IonQ may not be the winner in the quantum computing arms race, it is a leader. It will be a monster winner for investors if it wins the quantum computing arms race outright. However, if it does not, the stock will likely become worthless. That's why I like adding companies like Amazon and Alphabet to the mix, as they have a base business to fall back on should their internal quantum computing technologies not work out. Even if they don't, the quantum computing arms race may play out similarly to the AI arms race, where the cloud computing businesses see strong growth as more workloads come online. Before you buy stock in IonQ, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and IonQ wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Alphabet, Amazon, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, and Nvidia. The Motley Fool has a disclosure policy. 3 Top Quantum Computing Stocks to Buy in 2025 was originally published by The Motley Fool
Mint
11-06-2025
- Science
- Mint
Why is big tech fussing over fault-tolerant quantum computers?
For more than a decade, big tech companies like IBM, Google and Microsoft have been loudly announcing that quantum computers will soon solve tasks that stump today's supercomputers. From simulating molecules for drug discovery to optimizing global logistics, they promised revolutionary breakthroughs, and all that in seconds instead of months and years. Quantum computers do hold a lot of promise. Two bits in the traditional or classical computers we use in homes and offices today can represent one of four possible states—00, 01, 10, or 11—but only one at a time. In contrast, two quantum bits (qubits) in a quantum computer can represent all four states simultaneously, thanks to superposition and entanglement properties, effectively functioning like four classical computers in one. However, as a quantum computer's power grows exponentially when you add more qubits, it also becomes more prone to errors. In technical terms, these are known as Noisy Intermediate-Scale Quantum (NISQ) devices that typically host fewer than a few hundred qubits, but are incredibly fragile and lose their quantum properties when disturbed by variables like heat, vibrations, or electromagnetic interference. Tech companies use the term "error correction" to remedy this situation. It can be likened to having multiple backup musicians playing the same part in a noisy concert hall. If one musician makes a mistake, the others can detect it and correct it in real-time. In quantum computing, this means using many physical qubits (individual musicians) to create one "logical qubit" (the perfect musical note) that can maintain its quantum state reliably. But how soon is soon? Quantum, by its very nature, is unpredictable. Hence, the error correction process is gradual and not a one-time achievement. For instance, Google's quantum computing chip named Willow made waves in December 2024 for its ability to reduce system errors despite adding qubits, and solving a computation in under five minutes that would take a supercomputer 10 septillion years (1 with 25 zeroes), more than the age of the Universe, to finish. It even prompted Elon Musk to react with a 'Wow' when Google CEO, Sundar Pichai, announced this on X. But the next challenge, as Google itself put it, was "to demonstrate a first 'useful, beyond-classical' computation on today's quantum chips that is relevant to a real-world application". Google is targeting 1 million qubits by the end of the decade, though error correction means only 10,000 will be available for computations. This February, Amazon Web Services (AWS) announced its new Ocelot quantum computing chip "that can reduce the costs of implementing quantum error correction by up to 90%". AWS designed Ocelot's architecture with built-in error correction from the ground up, using 'cat qubits'—named after Schrödinger's cat—for their natural ability to suppress certain errors. In a first, AWS researchers integrated cat qubits with additional error correction components on a microchip, using scalable manufacturing techniques adapted from the microelectronics industry. That very month, Microsoft too announced a "significant leap in quantum computing" with the launch of Majorana 1, which it touted as a revolutionary quantum chip powered by a new topological core. While introducing the chip, Satya Nadella said on X that this "entirely new state of matter (the other three main states of matter being: solid, liquid and gas)", unlocked by a new class of materials called "topoconductors", is what powers Majorana 1. Microsoft added that this means the chip incorporates error resistance at the hardware level, making it inherently more stable. IBM advances the timeline IBM had earlier announced its commitment to building a 100,000-qubit fault-tolerant system by 2033. On 10 June, it advanced this deadline, unveiling a roadmap to build the world's first large-scale, fault-tolerant quantum computer by 2029. "IBM is charting the next frontier in quantum computing," CEO Arvind Krishna said in a press statement, attributing the progress to the company's "expertise across mathematics, physics, and engineering is paving the way for a large-scale, fault-tolerant quantum computer that will solve real-world challenges". The IBM Quantum Starling, to be housed in a new data center in New York, will perform 20,000 times more operations than current quantum computers. Its computational state would require memory equivalent to more than a quindecillion (1 and 48 zeroes) of today's most powerful supercomputers. Further, the new system addresses quantum computing's fundamental challenge: error correction. Starling will execute 100 million quantum operations using 200 logical qubits—units that combine multiple physical qubits to monitor and correct errors. This foundation will enable IBM Quantum Blue Jay, capable of 1 billion operations over 2,000 logical qubits. IBM's breakthrough centres on quantum low-density parity check (qLDPC) codes, which reduce required physical qubits by approximately 90% compared to existing methods. It has detailed the architecture's efficiency and real-time error correction capabilities in two separate technical papers. The roadmap includes three stepping stones: IBM Quantum Loon (2025) will test qLDPC architecture components; Kookaburra (2026) combines quantum memory with logic operations as the first modular processor; and Cockatoo (2027) will link multiple quantum chips together. This fault-tolerant quantum computer could revolutionize drug development, materials discovery, chemistry, and optimization by accessing computational power previously impossible to achieve at scale. These advancements are designed to culminate in Starling in 2029. 'IBM's decision to pull its 100-000-qubit goal forward to 2029 is just one out of multiple announcements to be made for quantum computing's commercial decade," Anders Indset, business philosopher and tech investor, said. 'Capital is pouring in, talent is converging, and the first consolidations are already reshaping the field. When money and competence collide at this scale, progress doesn't follow Moore's law (number of transistors on a computer chip doubles roughly every two years, making computers faster and cheaper over time), it can be much more radical." Indset expects more breakthrough announcements this year. "Boards that still treat quantum as a slide-deck talking point and potential future topics will soon be negotiating with rivals who are quantum secure and can model molecules or optimise global supply chains in minutes, not months," he added. What are other companies doing? Precedence Research pegs the global quantum computing market at $1.44 billion in 2025 and predicts it to touch $16.22 billion by 2034. While IBM, Google, Microsoft, and AWS lead with hardware-heavy approaches, startups like Quantinuum, PsiQuantum, and Riverlane are pushing complementary innovations—from new codes to scalable photonics and decoding software. D-Wave doesn't currently use standard quantum error correction because its machines are annealers, not universal quantum computers. Instead, it focuses on noise-aware design and error mitigation. A quantum annealer is a special type of quantum computer designed to solve optimization problems (finding the best solution out of many possible ones). Closer home, India's National Quantum Mission (NQM), launched in 2023 with an outlay of ₹6,003 crore, has already awarded up to ₹30 crore each to eight startups—QNu Labs, QPiAI India, Dimira Technologies, QuPrayog, Quanastra, Quan2D, Pristine Diamonds, and Prenishq. The idea is to jumpstart India's presence in quantum technologies, including quantum computing, sensing, communications, and quantum error correction (QEC). With NQM, India plans to develop quantum computers with 50-100 qubits in about five years, and accelerate it to 1000 qubits and beyond in eight years. Recognizing the importance of robust algorithm development—particularly for fault tolerance and error correction—Ajai Chowdhry, chairman of the NQM Mission Governing Board, and EPIC Foundation, told Mint in an interview that NQM is launching a dedicated initiative focused on quantum algorithms. The adoption of quantum technologies across industries could potentially add $280–310 billion of value to the Indian economy by 2030 with the manufacturing, high-tech, banking, and defence sectors at the forefront of quantum-led innovation, according to a 2022 Nasscom-Avasant report.
CNBC
10-06-2025
- Business
- CNBC
IBM announces new quantum processor, plan for Starling supercomputer by 2029
IBM on Tuesday announced a roadmap to develop a large-scale, fault-tolerant quantum computer called Quantum Starling. Part of the company's plan involves the new IBM Quantum Nighthawk processor, which is set to release later this year, according to a blog post announcing the details. "Unlocking the full promise of quantum computing will require a device capable of running larger, deeper circuits with hundreds of millions of gates operating on hundreds of qubits, at least," the company said in a blog post. "More than that, it will require a device capable of correcting errors and preventing them from spreading throughout the system. ... it will require a fault-tolerant quantum computer. Fault tolerance refers to the system's ability to correct and deal with errors. The quantum race accelerated this year after Google announced its breakthrough quantum chip "Willow" in December. Microsoft rolled out its first quantum chip Majorana 1 in February, and Amazon followed a week later with its "Ocelot" chip. Quantum computing has received more attention and investment in recent years as experts say they are getting closer to a device that can actually solve problems faster than a traditional computer based on semiconductors. Researchers say a working quantum computer will be a useful tool to simulate complicated physics or do math that could decipher encrypted data. Quantum Starling will be built at the IBM Poughkeepsie Lab in New York. IBM's new roadmap sets a timeline for building the components needed in the build, with a series of processors and adapters all named with the bird theme. This year the company is building the Quantum Loon chip, followed by the Quantum Kookaburra, a quantum processor module, in 2026, the blog post said. The Quantum Cockatoo adapter is set for 2027. The Quantum Nighthawk processor will replace the company's Quantum Heron processor, the company said in the post. IBM said Nighthawk can run quantum circuits with 5,000 gates, like the Heron, but plans to boost it to 15,000 gates by 2028.
Mint
10-06-2025
- Business
- Mint
IBM has a roadmap to a ‘fault-tolerant' Quantum computer by 2029
International Business Machines said Tuesday it has a plan for building what it calls the world's first large-scale, fault-tolerant quantum computer at its New York data center before the end of the decade. The computer, called IBM Quantum Starling, will be housed in its Poughkeepsie, N.Y., center and have 20,000 times the computational power of today's quantum computers, the tech giant said. 'I feel more comfortable than ever that a fault-tolerant quantum computer will exist before the end of this decade," said Jay Gambetta, IBM's vice president of quantum. 'We are putting error-correction in detail on our roadmap because we believe now we've solved all the scientific challenges." Quantum computers are susceptible to instability, requiring quantum error correction—a technique that identifies and addresses errors in computations—and more broadly, quantum fault-tolerance, the ability to operate even with errors present. Among the companies racing to build a practical quantum computer, from tech giants like Microsoft and Google to quantum companies like D-Wave, Quantinuum and IonQ, IBM isn't the only one that has promised a fault-tolerant computer by 2029. Others have recently made progress in the area of error correction, including Amazon, with its Ocelot quantum computing chip, which it said can reduce quantum errors by up to 90%. Google is also focused on error correction with its Willow chip. Quantum computers store information as quantum bits—otherwise known as qubits—which can exist as a zero and a one at the same time and so are much richer objects than the binary digits that ordinary computers use. That makes them capable of much more powerful types of computations than ordinary computers, and could mean they can help engineer materials at the molecular level, or even crack the defenses used to secure the internet. But one of quantum computing's major problems is that qubits generate errors as they tackle problems. They're fragile, and susceptible to 'noise," essentially small environmental disturbances that can force them out of their quantum state. That's made the quest to build a so-called fault-tolerant quantum computer a priority for tech giants and quantum companies alike. Gambetta said IBM's confidence in its 2029 timeline stems from two recent developments: further advances in a new approach to reducing errors called 'quantum low-density parity check" or qLDPC codes, plus a technique for identifying and correcting errors in real-time using conventional computing. Additionally, quantum computing startup SEEQC is expected to announce a collaboration with IBM this week as part of the U.S. Defense Advanced Research Projects Agency's Quantum Benchmarking Initiative, which is aimed at evaluating quantum companies' ability to achieve utility-scale operation. As part of the partnership, the two companies will work to shrink and consolidate IBM's racks of control hardware by transferring some control and readout elements directly onto a chip. SEEQC manufactures its own quantum chips, known as integrated QPUs, in a factory in Elmsford, N.Y. IBM is releasing more detailed plans for its large-scale quantum computer at this point because it hopes to spur developers' interest in creating quantum algorithms—a key part of the software that will run on quantum computers. That's critical to achieving a return on investment for quantum computers, a metric that matters to businesses, Gambetta said. But, at this point, it's not clear how IBM's breakthroughs 'translate into tangible business value," and the transformative potential of fault-tolerant quantum computers is still speculative, said Chirag Dekate, an analyst at IT research and consulting firm Gartner. IBM's plans are also light on details about its new quantum computer's commercial availability, and specific dates for when its error-corrected systems will be released, Dekate said. In response, IBM asserted that it has the most detailed roadmap and plans for commercialization in the industry. 'This is inherently hard to do because quantum innovation has many moving parts," Dekate said. 'The reality in quantum is that we are not yet at the ChatGPT-like moment where the technology, algorithms and impact become visceral and undeniable." At the same time, the comprehensive nature of IBM's plans to build its fault-tolerant quantum computer is worthy of note, said Heather West, an analyst at International Data Corp. IBM's plans should serve as a wake-up call to businesses and the tech community to pay attention to the speed at which quantum computing is advancing, West added. 'When you hear this announcement by IBM, as well as others by other hardware vendors, you realize that this is a real technology, and it's coming to fruition as we speak," she said. Write to Belle Lin at and Isabelle Bousquette at
CNBC
09-05-2025
- Business
- CNBC
How Amazon plans to catch Google and Microsoft in the quantum computing race
Another major player has entered the quantum-computing race: Amazon. The tech giant is the latest to make waves in the field with the February announcement of Ocelot, its own quantum chip. Amazon joins fierce competition from familiar rivals in cloud computing as Google, Microsoft and others race after what they say could be their next frontier. While Amazon is widely known as an e-commerce giant, its business took a pivotal and profitable turn in 2006 with the launch of Amazon Web Services. AWS is now a more than $100 billion business and a key part of why Amazon is worth over $2 trillion. The company sees quantum as the next major growth area for its cloud services. "There's a … strong business case for AWS or Amazon to get involved with quantum computing," Oskar Painter, director of quantum hardware for Amazon Web Services, told CNBC. "Quantum computing is very much in line with that sort of business model where you would have off-premise quantum computing resources that can be made accessible through the cloud." Part of the hype with quantum computing is the perceived payoff down the line. While still years away from commercial applications, McKinsey projects quantum could be a $173 billion market by 2040. "The opportunity to build just a supercharged part of AWS that can crack incredibly difficult problems, whether it's related to drug discovery or cybersecurity … that is an opportunity for them to charge a lot more," said Gene Munster, managing partner at Deepwater Asset Management. CNBC's Kate Rooney got an exclusive look inside the AWS Center for Quantum Computing located at the California Institute of Technology in Pasadena, California. Founded in 2019, Amazon's partnership with the university is starting to yield results, as it showcased the Ocelot quantum processor. Amazon says the chip, which it designed and fabricated in-house, uses a scalable architecture that reduces error correction by up to 90 percent. That's a key obstacle in developing these machines. Google's Willow chip, which was unveiled in December, also demonstrated improvements in this area. Ocelot uses "cat qubits," named after the Schrödinger's cat thought experiment. The company says the design intrinsically suppresses certain forms of errors, reducing the resources required for quantum error correction. "The heart of these quantum computing systems … it's really this quantum processor" Painter said. "The details of how that happens is really what differentiates one hardware platform from another – and really is where the secret sauce is and where all the intellectual property is." Munster said quantum-computing should be thought of as a new vertical within the AWS cloud business. "In the end, it will probably be solved and monetized through one of these big cloud platforms," Munster said. "And AWS has a great shot at being successful there." Watch the video as Kate Rooney goes behind-the-scenes at Amazon and learns how the company is taking on Google and Microsoft in the quantum computing race.
