Insider Brief
- Bank of America analysts view quantum computing as one of the most transformative technologies of the next decade, capable of reshaping finance, cybersecurity, healthcare, and logistics.
- The firm argues that quantum systems could unlock economic value by processing complex data at scale, but notes the technology is not yet ready for commercialization and remains technically fragile.
- Despite the bullish outlook, Bank of America has not initiated coverage on any quantum computing stocks, signaling cautious optimism about the timeline for practical adoption.
Although stopping short of official recommendations, Bank of America analysts say quantum computing could be among the most transformative technologies of the coming decade, with wide-reaching consequences for finance, cybersecurity, logistics and healthcare.
In its latest report on next-generation computing, the Bank of America Institute positions quantum alongside high-performance, neuromorphic, spatial and edge computing as critical to managing the explosion of global data and the growing demands of artificial intelligence. But quantum stands apart, the analysts argue, for its potential to solve problems classical computers may never crack.
That potential could tip global power dynamics, said BofA analyst Haim Israel, as reported in the Investor’s Business Daily.
“Whoever wins the quantum race will gain an unprecedented geopolitical, technological and economic advantage,” said Israel.
From Physics Oddity to Strategic Asset
The report details how quantum computing leverages principles of quantum mechanics — specifically, superposition, entanglement, and quantum bits (qubits) — to process information in ways that defy traditional computing logic. Unlike classical bits, which store information as either 0 or 1, qubits can exist in multiple probabilistic states. When entangled, changes to one qubit correlates with other qubits, regardless of distance, enabling a form of parallel computation.
The report notes that these principles allow quantum computers to process vast combinations of variables, for all practical purposes, simultaneously. Problems that might take a supercomputer billions of years to solve could potentially be resolved in minutes with a sufficiently large quantum machine.
However, the technology is not suited to everyday computing tasks. Instead, it is expected to excel in specific domains where data complexity and scale exceed the limits of conventional hardware, such as simulating molecules in chemistry, optimizing global supply chains, or decoding patterns in massive financial datasets.
The Data Crunch Is Real
The need for new computing paradigms is being driven by exponential data growth. According to the report, the world will generate 183 zettabytes (183 trillion gigabytes) of data by 2025, up from 120 zettabytes in 2022. Yet less than 1% of that data is currently analyzed, largely because existing computing systems lack the processing power to do so efficiently.
The analysts argue that quantum computing, particularly when integrated with artificial intelligence, could unlock meaningful economic value by enabling organizations to analyze and act on a greater share of their data. For instance, applying quantum capabilities to just 24% of global data — rather than 1% today — could, by one estimate cited in the report, double global GDP.
AI + Quantum = Future Power Couple of Computation?
One of the most promising frontiers lies at the intersection of artificial intelligence and quantum computing. AI systems, such as large language models, require enormous computational resources to train and operate.
The anslysts write: “We can talk about many applications, but one of the most exciting is the marriage of the two most powerful technologies: AI and quantum computers. The convergence of AI and quantum (AQ) technologies can enable fundamental improvements in the physical world as well as the digital one. While quantum computers will provide endless calculations when available, the increased capability of AI technologies can unlock several transformational use cases in the meantime.”
The report highlights that training needs for generative AI are increasing 275-fold every two years, placing unprecedented pressure on existing infrastructure.
While today’s AI models are largely developed using classical high-performance systems, the analysts suggest that future iterations could rely on quantum computers to accelerate learning, identify subtle patterns in data, and solve optimization problems more effectively. Quantum-enhanced machine learning could drive advances in fields as varied as medical diagnosis, portfolio optimization, and materials discovery.
Financial, Cyber, and Infrastructure Impacts
Bank of America’s report outlines a range of industries where quantum computing could be a game-changer:
- Finance: Quantum computers could improve real-time market prediction, portfolio optimization and fraud detection. Their ability to process complex datasets instantaneously makes them attractive for risk modeling and algorithmic trading.
- Cybersecurity: Today’s encryption systems rely on the difficulty of factoring large numbers, a task that would be trivial for a quantum computer with sufficient power. While this creates serious risks, it also opens the door to quantum-based encryption protocols that are theoretically unbreakable.
- Healthcare: Medical data, especially genomic and diagnostic information, is expanding rapidly. The report notes that medical knowledge now doubles every 73 days. Quantum processing could enable personalized treatment and predictive analytics at scale, potentially reducing costs and improving outcomes.
- Logistics and Mobility: Autonomous vehicles and smart infrastructure systems generate and require massive streams of real-time data. Quantum systems could optimize routing, communications, and resource allocation in complex urban environments.
- Scientific Research: Theoretical models in physics, such as simulations of dark matter or string theory, often overwhelm classical computers. Quantum could make these simulations feasible, opening new paths for discovery.
Commercialization Still a Hurdle
Despite the high expectations, widespread quantum computing is not imminent. Current quantum systems are fragile, error-prone, and often require cryogenic environments to maintain qubit coherence. Scaling these machines to a level where they outperform classical systems on practical tasks — so-called “quantum advantage” — remains a key challenge.
Bank of America’s analysts do not offer a definitive timeline but suggest that hybrid systems, combining quantum and classical architectures, may emerge first. Cloud platforms are expected to be early vehicles for quantum access, enabling companies to experiment with algorithms without owning hardware.
While quantum computing is the report’s most ambitious vision, it sits alongside several other emerging paradigms. High-performance computing is already addressing AI workloads through parallel architectures and custom chips, while edge computing moves processing closer to the user to reduce latency. Spatial computing — leveraging augmented and virtual reality — and neuromorphic computing, which mimics the human brain, are also highlighted as promising frontiers.
Each of these technologies addresses different parts of the same problem: the growing gap between data generation and the ability to make sense of it. But none, according to the report, holds the same transformative potential as quantum.
The Bottom Line
On one hand, Bank of America’s computing outlook reflects both urgency and opportunity. As data volumes explode and AI models scale in complexity, traditional systems will increasingly struggle to keep pace.
However, in a world where money talks and other substances walk, the Investor’s Business Daily points out that despite the optimism on quantum tech, the Bank of America analysts stopped short of initiating coverage on any quantum computing stocks.
This suggests that it’s still early for quantum technology. The report suggests quantum could reach key milestones by 2030-2033. Right now, though, the analysts seem to indicate that while quantum computing is exciting and its potential is impressive, there is more ground to cover as the technology marches toward what might represent a radical shift in how problems are solved and decisions are made.
