Quantum computing stocks soared this year as Google made significant progress in the field, but investors say it's still too early to see tangible returns from this emerging trend. Since the launch of the artificial intelligence craze with ChatGPT's debut in late 2022, investors have been searching for the next big technological breakthrough.
Many believed they found it this month when quantum computing stocks surged after Google announced that its Willow chip outperformed its 2019 predecessor and 'can reduce errors exponentially as we scale up using more qubits.' A qubit is a quantum bit unit used to encode data. The news propelled shares of Rigetti Computing, IonQ, D-Wave Quantum, and other related companies — and the excitement hasn't subsided. In the weeks since, these stocks have continued to climb, with the Defiance Quantum ETF (QTUM) tracking the sector up 17% in December and 52% for the year. Rigetti has surged 272% this month and over 1,000% year-to-date, while D-Wave has skyrocketed 163% month-to-date and more than 800% in 2024. While many consider quantum computing the next big technology trend poised to disrupt Wall Street and various sectors, it's too early to determine the major players or observe any real-world applications. 'Any kind of evidence that impacts financials is way, way, way out in the future,' said Paul Meeks, chief investment officer at Harvest Portfolio Management. 'What are they going to use it for and is it really a money maker? That's going to drive the results and valuation.' Despite recent advancements, quantum computing is not a new phenomenon to hit Wall Street. In fact, Meeks points out that industries have been discussing quantum computing for at least a decade. Many companies and AI experts view it as a potential solution to power vast data centers, but say practical use cases for the technology remain years — if not decades — away
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