For the better part of the last three years, seemingly nothing has sparked investor interest quite like the evolution of artificial intelligence (AI). Empowering software and systems with the tools to make split-second decisions without human intervention, as well as to become more proficient at their tasks over time, is viewed as a game-changing technology for most industries around the globe.
Over the last three decades, there’s pretty much always been a next-big-thing trend or technology to captivate the attention and capital of Wall Street and investors. Prior to AI, there was the advent of the internet, genome decoding, nanotechnology, 3D printing, blockchain technology, and the metaverse, to a name a few key trends.
But in rare instances of outsize optimism on Wall Street, two or more game-changing trends can coexist, as we’re witnessing now with the dual rise of AI and quantum computing.
The four biggest pure-play quantum computing stocks — IonQ (NYSE: IONQ), Rigetti Computing (NASDAQ: RGTI), D-Wave Quantum (NYSE: QBTS), and Quantum Computing (NASDAQ: QUBT) — have rallied between 700% to 5,130%, respectively, over the trailing year (as of Oct. 3). Though optimism is readily apparent, there’s no denying that the time to be fearful when others are greedy has arrived for these four stocks.
What is quantum computing, and why are investors so excited about it?
Quantum computing relies on quantum mechanics to solve complex problems that traditional computers can’t do. What makes quantum computing so exciting is its many real-world possibilities.
For example, quantum computers can be used to run simulations to determine how molecules would behave. These interactions can be quantified to narrow best courses of actions when developing drugs and targeting hard-to-treat diseases. Think of it as genome decoding that’s been ramped up to improve the likelihood of success when developing novel therapies.
Quantum computers can also be deployed to vastly improve cybersecurity solutions. This technology can potentially break existing encryption methods and lead to the development of quantum-resistant solutions that create lock-tight protections for cloud-based systems and end users.
