2 Top Quantum Computing Stocks to Buy in 2025

Quantum computing, the next big thing in tech after artificial intelligence (AI), is expected to be worth an estimated $840 billion in the next 15 years. As the market takes shape and practical uses for quantum computing develop, investors are looking for stocks to buy and hold for the long haul. Two companies that could benefit significantly from the growth of quantum computing are Alphabet Inc. (GOOGL, GOOG) and International Business Machines Corp. (IBM).



Alphabet Inc. (GOOGL, GOOG)
Alphabet, the parent company of Google, has been invested in quantum computing for years and recently made an advancement that positions it as a standout company in the space. In 2023, Google introduced Willow, a new quantum computing processor that exponentially reduces the error rate inhibiting quantum computing's growth. Willow achieved a benchmark computation in just five minutes, which would have taken a traditional supercomputer more time to complete than the age of the universe. This breakthrough demonstrates the potential for quantum computers to outperform classical computers in specific tasks, a concept known as quantum supremacy.

Willow's ability to reduce errors exponentially is a significant step towards creating more reliable and useful quantum computers. Additionally, Alphabet's investment in quantum computing is part of its broader strategy to expand its cloud computing services, offering customers access to quantum computing processing through its cloud platform. With a forward price-to-earnings (P/E) multiple of just 21, Alphabet's stock is relatively cheap at a time when the company is making significant advancements in quantum computing. This could indicate that the market is undervaluing Alphabet's long-term growth potential in the quantum computing space.



International Business Machines Corp. (IBM)
IBM, a tech stalwart with a strong presence in enterprise software, cloud services, and hardware, has been developing quantum computers and related software for several years. In late 2023, IBM introduced its Condor processor, the world's first 1,000-qubit quantum chip. The company is on track to release a "fully error-corrected" quantum computer by 2029, which would be a huge step forward in making real-world use cases for quantum computing much more feasible. IBM's size advantage, with $17.6 billion in sales in the fourth quarter of 2024 and $3.92 in non-GAAP earnings per share, allows it to invest heavily in research and development, including quantum computing.

IBM's primary use cases and applications for quantum computing include industry-specific solutions, quantum-as-a-service, and hardware and software development. The company has partnerships with large corporations to use its quantum computers in various sectors, such as healthcare, finance, and other industries. IBM has also built a quantum-as-a-service business through its cloud computing service, offering customers a subscription to tap into quantum computing processing. With a forward P/E multiple of just 24, IBM's stock is relatively inexpensive compared to its historical valuation and the broader market. This could position IBM for significant long-term growth in the quantum computing sector.



In conclusion, Alphabet and IBM are well-positioned to capitalize on the growing potential of quantum computing. Both companies have made significant advancements in the field and have forward P/E multiples that suggest their stocks may be undervalued. As these companies continue to make progress in quantum computing, their stock prices may increase, providing opportunities for investors who buy and hold these stocks for the long haul.

Ask Aime: What are the long-term growth prospects for Alphabet Inc. in quantum computing?