TLDR
- Tech giants Alphabet, Microsoft, and IBM are making major advances in quantum computing development
- Pure-play stocks IonQ and D-Wave show strong revenue growth despite early industry stage
- Market projections suggest quantum computing could reach $170 billion by 2040
- Recent breakthroughs include Microsoft’s Majorana 1 chip and Google’s Willow processor
- Established tech companies may offer more stable investment options than speculative pure-plays
The quantum computing industry is heating up in 2025, with both tech behemoths and specialized startups vying for position in what could become a $170 billion market by 2040. This emerging technology promises to solve problems far beyond the reach of today’s most powerful computers.
Google parent company Alphabet (GOOG) has made steady progress in quantum computing over the past decade. The company made waves in 2024 with its Willow quantum processor, which reportedly achieved “quantum supremacy” by performing calculations impossible for traditional supercomputers. This development hints at Alphabet’s growing strength in quantum technology.
Microsoft (MSFT) entered the spotlight with its Majorana 1 quantum chip, which uses a new approach based on topological superconductors. CEO Satya Nadella views this innovation as a key step toward the company’s goal of a million-qubit processor, widely seen as necessary for truly transformative quantum applications.
IBM (IBM) has already built commercial momentum in the quantum space. The company has generated nearly $1 billion in revenue from its IBM Quantum offerings since 2017. Their approach spans hardware, hybrid-cloud solutions, and open-source software development kits.
Small Players with Big Potential
Several pure-play quantum computing companies offer focused exposure to this emerging technology. IonQ (IONQ) uses trapped-ion technology to create stable, high-fidelity qubits. The company has shown impressive growth, doubling revenue annually since 2021 and projecting between $75 million and $95 million for 2025—a 97% year-over-year increase.
D-Wave Quantum (QBTS) specializes in quantum annealing, which has proven effective for complex optimization problems in logistics and manufacturing. The company reported 153 customers by the end of 2024 and saw bookings jump 128% to $24 million, suggesting strong revenue growth ahead.
Rigetti Computing (RGTI) takes a full-stack approach to quantum computing, handling everything from chip design to fabrication. The company recently launched its 84-qubit Ankaa processor, positioning itself for potential growth in the evolving quantum landscape.
Industry voices urge a realistic view of quantum computing’s timeline. Nvidia (NVDA) CEO Jensen Huang has suggested that truly useful quantum computers may be about 20 years away. This perspective tempered market enthusiasm that had briefly sent quantum stocks soaring in late 2024.
For investors looking at quantum computing, the choice between pure-play companies and established tech giants presents different risk profiles. While companies like IonQ offer direct exposure to quantum technology, their operations remain limited and their futures uncertain.
In contrast, major tech companies like Alphabet, IBM, and Nvidia bring massive resources, diverse revenue streams, and market power to their quantum initiatives. These companies can better weather research setbacks and are well-positioned to commercialize quantum technologies when they mature.
IonQ’s recent stock performance illustrates the volatility in pure-play quantum investments. The stock climbed from under $7 to over $51 in just four months during 2024, before declining after industry experts moderated expectations about quantum computing’s practical timeline.
The quantum computing sector remains in early development, with many technical hurdles to overcome before reaching widespread commercial use. Investors should view this sector with a long-term lens and consider how quantum computing fits within a broader investment strategy.
Current valuations reflect market assessments of future potential rather than present commercial reality. As the technology evolves, companies demonstrating superior approaches and strong commercial adoption will likely reward patient investors.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
