Although quantum computing has not yet entered the public spotlight like artificial intelligence, the stock prices of some companies within the sector have already demonstrated remarkable growth momentum in the short term. These enterprises are dedicated to building and commercializing the next generation of computing technology. Unlike traditional computers that use “bits” as the fundamental unit of information, quantum computers rely on “qubits” (quantum bits), which process data in more complex ways, thereby enabling the solution of more profound and complex equations. If researchers’ predictions hold true, quantum computing will play a key role in major societal challenges such as new drug development and combating climate change, suggesting immense potential for the stock prices of related companies. Despite a long road ahead and inherent risks, two quantum computing stocks have already captured attention with gains exceeding 2200% over the past year.
The stock price of Rigetti Computing (RGTI) skyrocketed over 2800% within a year. This fervor is partly attributable to the AI wave, which has prompted investors to focus on quantum computing’s vast potential and harbor expectations for its successful commercialization.
Technologically, Rigetti employs processors based on superconducting qubits, whose advantages lie in high scalability and fast computational speeds. In July of this year, the company announced that its 36-qubit system achieved a median two-qubit gate fidelity of 99.5%. This key metric for accuracy saw the error rate halved compared to the previous best result. This breakthrough lays a solid foundation for the release of a quantum computer with over 100 qubits while maintaining high accuracy by the end of the year.
Furthermore, Rigetti recently secured a three-year contract worth $5.8 million from the U.S. Air Force Research Laboratory to collaboratively develop advanced superconducting quantum networks. This technology is considered a prototype for the next-generation internet and could potentially enable communications impervious to hacking. However, investors must also soberly recognize that Rigetti currently generates minimal revenue, operates at a loss, and carries a high market valuation. Should technological development encounter obstacles or performance fall short of expectations, its stock price could face significant downside risk.
Another standout stock is D-Wave Quantum (QBTS), whose price increased by 2278% over the same period. D-Wave’s uniqueness stems from its focus on “quantum annealing” technology. This approach aims to find optimal solutions for complex problems in a more energy-efficient manner, setting its path apart from other quantum computing companies.
A report from J.P. Morgan offered a positive assessment of its Advantage2 prototype. This prototype boasts over 1200 qubits and has demonstrated computational speeds far surpassing those of traditional supercomputers. Its ultimate goal is to build a 7000-qubit system. The report noted that the machine showed significant performance improvements in solving complex optimization problems like spin glasses. However, the report also cautioned that the application scope of D-Wave’s annealing technology might be limited to specific types of problems, and the broad applicability of this technological path remains debated within the industry.
Similar to Rigetti, D-Wave also faces challenges of insufficient revenue and losses, alongside a high market capitalization. While its potential certainly sparks imagination, the uncertainties are equally prominent.
The essence of investment lies in anticipating trends before they become reality, so it’s understandable that investors are enthusiastic about quantum computing. However, prudent investing is equally about risk management. Given that quantum computing companies are generally in an early, high-investment stage, with both technological paths and commercial prospects subject to variables, it is recommended that investors allocate only a small amount of speculative capital to this sector. The specific amount should depend entirely on an individual’s financial situation and risk tolerance. While embracing the immense potential, one must remain vigilant about potential high volatility.
