How to Invest in Quantum Stocks: A Long-term Guide

Insider Brief

Quantum computing is emerging as a high-risk, high-potential sector where governments and corporations are investing billions, creating opportunities for early investors learning how to invest in quantum stocks.
Long-term investors should consider the unique challenges, along with the opportunities, before exposing themselves to the risks of placing money in this emerging quantum technology landscape, including the technology’s scientific advances — and remaining engineering hurdles.
Publicly traded options include pure-play companies such as IonQ, Rigetti, and D-Wave, alongside diversified giants like IBM, Honeywell, Google, Microsoft, Fujitsu, and NVIDIA that provide exposure while anchored in broader businesses.
Key investor signals include benchmarks like quantum volume, fidelities, and error correction, as well as progress in adjacent markets such as quantum communication and sensing.

I know what you’re thinking: Way to go, Swayne, thanks for another one of those hypey clickbaity stories that rank high in search engines and bring in investors excited about fast-rising public quantum computing companies, but ultimately leave them with a bunch of fluff.

You’re half right. I wouldn’t mind bringing in readers through search engines and AI searches, but I’m hoping this piece will help people who are truly interested in if they should — and how they can — invest in quantum stocks for the long term, rather than the “three-quantum-stocks-you-simply-must-have-in-your-portfolio-for-the-next-four-days” type of article.

(Not that there’s anything wrong with that.)

So, let’s see if we can go beyond the hype and create a guide to investing in quantum technology that can prepare investors who may be new to the science of quantum and who may not understand the full potential — and problems — of making long-term bets on the technology and its young companies.

The Rise of Quantum Technology

First, quantum computing is becoming an interesting investment thesis because the technology is moving — and I’m willing to add “rapidly” — from physics labs into financial markets. Investors who watched artificial intelligence (AI) transform technology and stock valuations are now eyeing quantum as the next wave.

In fact, the transformation of AI from a deep tech oddity to the largest investment category in the world might offer a useful parallel. A decade ago, artificial intelligence was seen as highly speculative, confined to academic labs and niche applications. Today it is the backbone of trillion-dollar companies and the driver of entire markets. Quantum computing could follow a similar path, moving from experimental systems to essential infrastructure — and investors positioning early may benefit from that long-term shift.

While admittedly quantum technology is still in its infancy, there are at least three compelling reasons why investors might want to establish a position in these pioneering tech firms. First, governments are spending billions to prepare for a future where quantum machines may provide national security advantages. Investors are also pouring billions into both private and public quantum companies. Finally, big businesses are considering how they can use quantum technology, whether that’s anything from investing in quantum cybersecurity to deciding if quantum computers should be used in their business work flows. In other words, eager customers have already lined up.

For investors, this opportunity comes with both promise and peril. Current quantum stocks have shown volatility, but the sector’s potential to reshape industries from pharmaceuticals to logistics means early positioning could deliver outsized returns.

Why Quantum Matters for Investors

Let’s look at why organizations — from national governments to startups — are already probing the promise of quantum computing. First, a quantum computer processes information differently from today’s silicon chips. Instead of binary bits, it uses qubits, which, as we’ll discuss a little more in depth below, can hold more than one probabilistic state at a time. In theory, this allows quantum systems to analyze complex problems exponentially faster than traditional machines.

Applications under active exploration include:

Drug discovery – simulating molecules for new medicines.
Finance – portfolio optimization and risk modeling.
Logistics and energy – optimizing routes and power grids.
Cybersecurity – both threats and opportunities from quantum cryptography.

Governments in the U.S., Europe, China, and India are backing research with multi-billion-dollar programs. Big tech firms are integrating quantum into their strategies. For investors wondering how to invest in quantum stocks, this government and corporate support helps de-risk what is otherwise an experimental field.

How Quantum Computing Works (In Plain English)

It might help to step back and look at how it actually works. Today’s computers rely on bits — tiny on/off switches represented as ones and zeros. Quantum computers, by contrast, use units of information called qubits. Unlike bits, qubits don’t have to be just a one or a zero. Thanks to a property known as superposition, they can hold multiple probabilistic states at once, allowing a quantum machine to explore many possible outcomes simultaneously rather than one at a time.

Another strange — yet theoretically powerful — feature of qubits is entanglement. When two qubits are entangled, the state of one is correlated to the state of the other, even if they are far apart. This means changes in one qubit ripple to its partner, creating powerful correlations that classical computers can’t match. Entanglement gives quantum processors the ability to solve problems with deeply interconnected variables, such as simulating complex molecules or optimizing global supply chains.

Finally, quantum systems make use of interference. Much like overlapping waves in water can either reinforce each other or cancel out, quantum algorithms are designed so that the “wrong” answers cancel themselves while the “right” answers build up. In effect, the system nudges itself toward the correct solution.

The combination of superposition, entanglement and interference means that quantum computers don’t just run faster versions of classical programs, which is often how it’s termed, they operate in a fundamentally different way. This gives them an edge on problems where the number of possibilities explodes beyond what even the world’s most powerful supercomputers could handle.

That’s why industries like finance, pharmaceuticals, and logistics are watching closely: the promise is not just incremental improvement but entirely new capabilities.

You knew there would be a “however,” right?

As powerful and almost magical as these qubits sound, they come with a major drawback: they are fragile. Quantum states are easily disturbed by the environment — a passing vibration, a stray electromagnetic field, or even the act of measurement itself can knock them out of alignment. This problem, known as noise, is why today’s quantum computers often return results that are inconsistent or riddled with errors. Unlike classical bits, which can be stored and copied reliably, qubits demand extraordinary precision just to stay stable long enough to perform useful calculations.

This is where error correction becomes the central engineering challenge of the field. Researchers are developing ways to link groups of imperfect qubits together so they can act as a single “logical qubit” that resists noise. It’s a bit like using a team to back up a star player: one qubit falters, but the group carries the result forward. Building these layers of protection requires immense resources, but it is the key to scaling quantum machines from lab experiments into reliable commercial systems.

For investors, this means headlines about advances in error correction are just as important as those announcing bigger qubit counts. A company that demonstrates lower error rates or stable logical qubits is signaling genuine progress toward practical applications.

The science is exotic, but the takeaway is straightforward: the companies that master error correction are the ones most likely to turn quantum promises into profitable products.

Beyond Computing: Quantum Communication and Sensing

While most of the headlines — and this article, itself — tend to focus on quantum computers, the broader field of quantum technology is not limited to machines crunching calculations. In fact, two other areas — quantum communication and quantum sensing — are likely to reach commercial maturity sooner, and they deserve just as much attention from investors.

Quantum communication builds on one of the most intriguing features of quantum mechanics: entanglement. When two particles are entangled, their states are linked no matter how far apart they are. This makes it possible to create communication channels that are effectively tamper-proof. If anyone tries to intercept the information, the entanglement breaks and the intrusion becomes immediately obvious. China has already demonstrated satellite-based quantum key distribution, and Europe is funding projects to develop continent-wide quantum-secure networks. For governments, this promises a new era of cybersecurity; for investors, it signals a potential market in ultra-secure communications that could become as indispensable as today’s internet infrastructure.

Quantum sensing takes the same underlying principles and applies them to measurement. Remember when we discussed how qubits and quantum particles are exquisitely sensitive to tiny changes in their environment? That also means they can be used to detect things with a precision far beyond classical instruments. These sensors can measure time more accurately than atomic clocks, detect gravitational shifts for underground mapping, or track magnetic fields in ways that could transform medical imaging. Defense agencies are exploring them for navigation systems that don’t rely on vulnerable GPS signals, while companies in energy and healthcare are testing early prototypes for commercial use.

What makes communication and sensing especially compelling is that they may generate meaningful revenue long before quantum computers achieve full-scale commercial readiness. While building a million-qubit computer remains a long-term challenge, deploying a quantum sensor for oil exploration or a secure quantum link between government offices is much closer to reality. For investors, this means that exposure to quantum doesn’t have to be a binary bet on whether computers succeed. The broader landscape offers multiple entry points, some of which may pay off sooner and with more predictable markets.

If you’re investing in a quantum company, check to see if they are exposed to other types of quantum tech. It could help your diversify by spreading your bet across these often unpredictable technologies. For example, Quantinuum and IonQ, both known for trapped ion devices, are also branching into quantum sensing, quantum artificial intelligence — and more.

Now, let’s look at some of the companies competing in this new world of quantum technology

How To Invest in Quantum Stocks: Understanding Pure-Play Quantum Options

For those seeking direct exposure, a handful of pure-play quantum computing companies trade publicly, including:

IonQ (NYSE: IONQ) – Focused on trapped-ion quantum computers, IonQ has struck partnerships with Amazon Web Services and Microsoft Azure. Its stock is often treated as a bellwether for the industry.
Rigetti Computing (NASDAQ: RGTI) – A U.S. company developing superconducting qubits and offering cloud-based access. Rigetti emphasizes hybrid quantum-classical workflows.
D-Wave Quantum (NYSE: QBTS) – Specializes in quantum annealing, a different approach tailored for optimization problems. The company has long been an early mover, though its technology path differs from universal quantum computers.

Two companies — Infleqtion and Horizon Quantum — have initiated the process to trade publicly through Special Purpose Acquisition Companies, also referred to as SPACs. This process allows companies to go public in a more efficient and faster way than through the traditional initial public offering (IPO) route. Although SPACs have developed a reputation in recent years for being less prestigious than IPOs, they remain a legitimate pathway to the public markets. For young quantum firms, the SPAC structure can provide quicker access to capital and reduce the uncertainty that often surrounds the long IPO process. Investors should keep in mind, however, that while SPACs can accelerate growth opportunities, the market tends to scrutinize them more closely, making execution and performance all the more important.

Whether SPAC or IPO, these pure place companies are small compared to traditional tech giants and remain speculative. Share prices tend to demonstrate higher volatility, swinging with announcements of new contracts or scientific milestones.

Diversified Giants With Quantum Exposure

Some investors researching how to invest in quantum stocks may prefer exposure to quantum without relying entirely on young, high-risk firms. Several established corporations are investing heavily in quantum while maintaining large, profitable core businesses:

Honeywell (via Quantinuum) – Honeywell merged its quantum unit with Cambridge Quantum to form Quantinuum, one of the world’s most advanced quantum firms. Honeywell retains a major ownership stake while benefiting from its aerospace and automation revenues.
IBM (NYSE: IBM) – A pioneer in superconducting qubit research, IBM operates one of the largest cloud-accessible quantum fleets. Its hybrid approach, combining classical supercomputers with quantum processors, positions it as both a research and commercialization leader.
Alphabet (NASDAQ: GOOGL) – Google’s Quantum AI group achieved the first demonstration of quantum advantage in 2019 and continues to push research. Quantum is a long-term bet within Alphabet’s broader innovation portfolio.
Microsoft (NASDAQ: MSFT) – Through Azure Quantum, Microsoft integrates third-party quantum hardware with its cloud platform and develops software frameworks like Q#.
Fujitsu (TYO: 6702) – The Japanese company is advancing both quantum and quantum-inspired computing. Its work complements its established IT services and computing businesses.
NVIDIA (NASDAQ: NVDA) – Best known for GPUs that fuel AI, NVIDIA is extending its dominance into quantum. Through CUDA-Q and cuQuantum frameworks, it provides the classical-quantum integration layer. Its venture arm, NVentures, has also invested in multiple quantum hardware startups.

For investors, these firms provide a hedge: exposure to quantum’s upside while anchored in established businesses.

Key Benchmarks Investors Should Watch

Quantum science can be intimidating, but investors don’t need to parse technical papers. Instead, watch for a few headline milestones that typically signal commercial progress:

Quantum Volume / Qubits – Measures of machine performance and scale. Rising numbers suggest improved capabilities.
Error Rates / Error Correction – Lower error rates and demonstrations of error-corrected logical qubits indicate real progress toward practical systems.
Fidelities – A measure of how accurately qubits perform operations. Higher fidelities indicate more reliable calculations and are essential for scaling toward fault-tolerant quantum computers.
Quantum Advantage Claims – Headlines about solving problems classical supercomputers cannot — but investors should scrutinize whether these are narrow demonstrations or broadly useful.
Partnerships and Contracts – Deals with government agencies, Fortune 500 companies, or cloud providers often precede revenue.
Funding and IPOs – Major rounds of financing or new listings signal investor confidence and can shift valuations across the sector.

These benchmarks tend to drive stock movement, especially for pure-play companies.

The Risks and Challenges

Quantum computing remains technically difficult. Qubits are fragile and prone to errors, requiring complex error correction. Timelines are uncertain: practical, large-scale machines could take years to arrive.

For stocks, this means volatility. Pure-play companies may see valuations spike on announcements but struggle to generate steady revenues. Even diversified giants may face questions about when — or if — quantum turns profitable.

Investors should also track competition: China, Europe, and the U.S. are racing to lead, and the geopolitical dimension could shape where contracts and capital flow.

Investment Strategies

Diversification: Balance pure-play quantum stocks with diversified giants to spread risk.
Milestone Tracking: Monitor the key benchmarks above to separate real progress from hype.
ETFs and Funds: Quantum and advanced-computing ETFs are emerging, offering a basket approach to the sector.

Quantum computing is not yet a mainstream market, but the momentum is increasing. For speculative investors, pure-play companies like IonQ, Rigetti, and D-Wave offer direct exposure. For those seeking more stability, companies such as Honeywell, IBM, Google, Microsoft, Fujitsu, and NVIDIA provide quantum upside while anchored in established businesses.

As with AI a decade ago, quantum may reward patient investors who recognize both the risks and the transformative potential.

To be transparent, this is not meant to be investment advice, just an introduction to the quantum stock landscape.