The next big thing in technology could very well be quantum computing. Traditional computers operate on bits, which can be in just one of two states. Quantum computers, by taking advantage of the bizarre properties of quantum mechanics, operate on qubits. Keeping things simple, a qubit can be anywhere “in between” its two possible states.
Quantum computers are uniquely capable of solving certain computing problems that are effectively impossible with traditional computers. Alphabet‘s Google recently announced a major quantum computing breakthrough with its Willow quantum chip, which is capable of performing in just five minutes a specific calculation that would take the world’s most powerful supercomputer 10 septillion years.
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Google was quick to note, however, that no quantum computer to date has outperformed traditional computers in commercially relevant applications. The path that takes quantum computing from a science project to a revenue-generating industry will require researchers to figure out how to successfully apply the technology to something real.
While there are now plenty of companies working on quantum computing, International Business Machines (NYSE: IBM) is a pioneer. The company’s researchers built the first functioning computer using quantum properties way back in 1998, using it to successfully sort a list of items. IBM has been plugging away ever since, making a quantum computer accessible through IBM Cloud in 2016 and announcing various iterations of its quantum computers over the years.
In November, IBM unveiled Heron, its most powerful quantum computer to date. The company plans to have error-corrected systems ready by 2029, and it’s exploring the idea of integrating quantum computers with traditional central processing units (CPUs) and graphics processing units (GPUs) to solve real-world problems.
As an investment, IBM makes a lot of sense for those wanting to bet on quantum computing without taking on too much risk. If quantum computing doesn’t pan out commercially, IBM will be just fine. The company is a leader in hybrid cloud computing, particularly after acquiring Red Hat, and it’s found a successful enterprise AI strategy. The company’s vast enterprise customer base, with relationships sometimes spanning decades, gives the company an important edge.
The first company to crack the code and build a quantum computer capable of solving real-world problems could dominate a massive new industry. There are countless computing problems that are intractable for classical computers that could potentially be sped up enormously by quantum computers.
While quantum computing holds immense potential, it’s important to remember that it’s been more than 25 years since IBM demonstrated its first quantum computer. The technology may never successfully be used for practical commercial applications, or it may take multiple decades to bear fruit.
There are plenty of start-ups working on quantum computing, but my bet is on IBM. It will likely still take many years for quantum computing to transform into a real business, and that’s the best-case scenario. IBM will still be around, while those start-ups, absent a big breakthrough, will likely be history.
If pure play quantum computing companies sound exciting, then consider buying IBM. It’s a relatively low-risk way to bet on the quantum computing industry.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Timothy Green has positions in International Business Machines. The Motley Fool has positions in and recommends Alphabet. The Motley Fool recommends International Business Machines. The Motley Fool has a disclosure policy.
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