Quantumania

Quantum computing sounds like something from an Isaac Asimov novel, but apparently, it’s the next big thing.

So…what is it? And more importantly, should you invest in it?

Quantum-what?

Keep in mind that we’re financial journalists, not rocket scientists, when we say that quantum computers are basically computers that use quantum mechanics to think far faster than your average laptop. They can solve problems in seconds that would take regular computers thousands of years to figure out, which has huge implications for everything from physics to machine learning to, let’s say, optimizing your portfolio for maximum profit.

All eyes have been on AI lately, but that changed last week with Alphabet's reveal of its new Willow quantum chip. It’s a breakthrough in quantum computing, though it’s still a long way from being commercially applicable.

Only a few days later, Quantum Computing skyrocketed on news that it’s snagged a prime contract with NASA to power the space agency’s extraterrestrial imaging efforts. Shares soared 296.86% over the last five days, and are up a mind-boggling 2,785.39% in 2024. Naturally, investors plagued by a fear of missing out (FOMO) have dived into the space en masse, spurring on a massive rally in this nascent industry.

Competitors like D-Wave Quantum and Arqit Quantum rose 108.37% and 53.02%, respectively, in the last five trading sessions. D-Wave is up 992.68% in 2024, while Arqit has risen 208.85% year to date.

But not everything’s perfect in quantum-land. IonQ, Inc is down 14.46% today, and Rigetti Computing has fallen 3.95%. That said, IonQ is up 208.39% year to date, and Rigetti has soared 1,061.96% in 2024.

Keep in mind…These are very young, very small companies that have a lot of hype but not a lot to show for it just yet. In fact, back in the heyday of meme stocks and SPACs in 2021 and 2022, several of these stocks reached incredible heights on retail trader attention—only to plummet to nearly $0.00 once the excitement died out.

Quantum profits this week are great and all, but investing in these stocks now is a quantum leap of faith that you may not want to make.—MR