HOW TO INVEST IN
QUANTUM COMPUTING

Revolutionary quantum computing technology is getting closer to bringing about wholesale changes to the way we operate. Despite it being difficult to predict the full potential of this groundbreaking technology, investors are already identifying ways to buy into the sector.

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Quantum computing has become a topic of increasing interest among investors due to its potential to revolutionise industries such as finance, healthcare, and cybersecurity. As breakthroughs continue to emerge, investors are exploring how they can gain exposure to this cutting-edge technology.

What Is Quantum Computing?

Quantum computing is a revolutionary technology that leverages the principles of quantum mechanics to process information in ways that classical computers cannot. Unlike traditional binary-based computing, quantum computers use qubits, which can exist in multiple states simultaneously. 

Quantum computers can solve highly complex problems at unprecedented speeds, making them valuable for industries requiring advanced computations.

Why Are Investors Excited About Quantum Computing?

Quantum computing holds immense potential to disrupt multiple sectors, from optimising financial models to accelerating drug discovery.

Some key reasons investors are eager to participate in this space include:

• Market Growth — The quantum computing industry is projected to surpass $125 billion by 2030.
• Corporate Adoption — Companies like IBM, Google, and Microsoft are heavily investing in quantum research.
• Technological Advancements — Continuous breakthroughs in qubit scalability and error correction improve commercialisation prospects.

How Can Investors Gain Exposure to Quantum Computing?

There are multiple ways to invest in the growth of quantum computing, ranging from direct investments in quantum computing stocks to indirect exposure through ETFs and related industries.

Investing in Quantum Computing Development

Some of the world’s largest technology firms are spearheading quantum computing research and commercialisation. Investors can gain exposure by considering:

• Alphabet (GOOG) — A leader in quantum R&D, with innovations like the Willow chip.
• IBM (IBM) — Offers quantum cloud services and collaborates with businesses on quantum applications.
• Microsoft (MSFT) — Developing a scalable quantum computing ecosystem.
• D-Wave Quantum (QBTS) — Improving sales figures and groundbreaking technology.
• Palantir (PLTR) — Incorporating quantum computing technology into its data analytics platforms.
• Ionq (IONQ) — Founded by academics who maintain a pioneering approach.

ETFs and Broader Market Exposure

For diversified exposure, ETFs that include quantum computing stocks can be a less volatile option:

• Defiance Quantum ETF (QTUM) — Focuses on firms engaged in quantum computing and AI.
• WisdomTree Cloud Computing ETF (WCLD) — Includes cloud technology stocks with quantum computing potential.

Quantum Computing Adjacent Sectors

Quantum computing also relies on advancements in semiconductor technology, specialised materials, and AI-driven software solutions. Investors looking for indirect exposure may consider companies developing:

• Semiconductors for quantum processors — products manufactured and distributed by NVIDIA (NVDA) and Taiwan Semiconductor Manufacturing (TSM)
• Cryogenic cooling systems — such as those produced by Thales (HO.PA)
• Quantum-safe cybersecurity solutions — With new technologies come new threats, and companies such as CyberArk (CYBR) offer services to protect tech infrastructure from new potential threats associated with the power of quantum computing.

Risks and Opportunities of Investing in Quantum Computing

While the potential is significant, investing in quantum computing also presents risks:

• Early-Stage Technology — Many companies are still in research phases, delaying commercial applications.
• High Volatility — Quantum stocks can be speculative and subject to price swings.
• Regulatory Uncertainty — The impact on encryption and cybersecurity could lead to increased government oversight.

Opportunities	Risks
High growth potential	Long commercialisation timeline
Industry-backed innovation	High volatility
Emerging government and enterprise support	Regulatory uncertainties

Final thoughts

Quantum computing is on the brink of transforming industries and potentially offers exciting investment opportunities. While the potential is immense, investors should carefully navigate the risks involved. To dive deeper into quantum investments and stay ahead of market trends, continue exploring the latest insights and developments.

Learn more about quantum computing investments by joining the eToro Academy.

Why are investors drawn to disruptive technology?

Any innovation which significantly alters established industries and markets can create new sectors and business models which have significant growth potential. Investors are drawn to disruptive technologies and growth stocks because some of the previous “winners” have experienced exponential share price growth. It should be said that the record books also contain names of many other growth stocks which failed to reach their potential and plummeted in value.

What are qubits?

Qubits, or quantum bits, are the fundamental units of information in quantum computing. They are the core elements behind the potential for super-powered computing and while similar to the bits used in classical computing, qubits can exist in a superposition of states, meaning they can represent 0, 1, or a combination of both simultaneously.

What are the challenges facing the development of quantum computers?

The main challenge facing the expansion of quantum hardware is that quantum computers require an optimised environment. Many quantum processors are only functional at or around absolute zero (-273°C), require there to be no atmospheric pressure, and need to be completely insulated from the earth’s magnetic field.