“Should we expect a significant increase in the capitalization of companies developing quantum technologies in the coming years?”, — write: epravda.com.ua
Shares of companies working in the field of quantum computers increased by 177% in 2024. However, they remain in the shadow of topics related to artificial intelligence, language models, cryptocurrencies, major stock indices. Recent announcements by Google and NASA have returned investors’ attention to this area. Even in its early stages of development, the technology promises to have a long-term impact on many industries. Quantum computers use qubits (quantum bits) to perform tasks beyond the reach of conventional computers. Their work requires ultra-low temperatures, highly specialized specialists and significant investments. The basis of the technology is quantum mechanics and work with subatomic particles such as electrons or photons. Qubits allow particles to exist in multiple states simultaneously. This means that the answers to difficult questions already “exist”. It is only necessary to correctly formulate the task, repeatedly measure the wave function and determine the most likely solution. Quantum computers perform calculations that would take millions of years for traditional systems. However, their power and scope are still limited.Advertisement: Applications of quantum technologies These systems are particularly effective in cryptography: they are able to break traditional encryption methods and at the same time help in the development of quantum-resistant cryptography. In the field of optimization, quantum computers are used in logistics, portfolio management and resource allocation. Quantum computers contribute to the discovery of new medicines and the development of materials science by modeling molecules and chemical reactions with an accuracy beyond the reach of classical computers. They improve machine learning, solve complex mathematical problems like differential equations, and help in biology, from protein structure analysis to genomics. In addition, quantum systems optimize energy consumption, battery design, and financial modeling, including risk management and derivatives valuation. Despite the current limitations (noise, the need for error correction), quantum computers can transform many industries. Advertisement: Market and prospects for development The volume of the current liquid market for quantum technologies in the US is small – about 20 billion dollars, but the target markets where this technology can be applied , almost limitless. After COVID-19, quantum computing remained a niche topic, supported by enthusiasts and tech giants like IBM, Microsoft, and Intel. However, recent events have sparked a new wave of interest among investors. IBM, a leader in quantum computing, describes it as “a new branch of computer science that uses quantum mechanics to solve problems beyond the reach of even the most powerful classical computers.” In addition, the United Nations has declared 2025 the International Year of Quantum Science and Technology. Recent news has become a catalyst for interest. Google introduced the Willow quantum chip, which provides unprecedented computing power. In turn, Quantum Computing (QUBT) announced a contract with NASA. The company will use the Dirac-3 quantum machine for data and image processing. Criticism and the future of quantum computers There were criticisms. At the CES (Consumer Electronics Show) exhibition, the CEO of Nvidia, the largest US company with a market capitalization of $3.4 trillion, spoke quite critically about quantum computers. He stated that Nvidia sees no reason to worry about quantum computing. Classic supercomputers remain indispensable for error correction, and Nvidia’s products are great for that, he added. “If we talk about 15 years to create useful quantum computers, then this is probably too early, 30 years is too late. But 20 years is a realistic time frame that many of us could believe,” – said the manager. Read also: Microcircuits per trillion: how Nvidia became the main manufacturer of “iron” for artificial intelligence Currently, Nvidia is focused on “classic computing”, such as graphics processors, which support the work of artificial intelligence. The company does not have a working quantum computer, but the opinion of its CEO is authoritative for the market due to the company’s leadership in the field of high technologies. It is interesting that Nvidia itself trades with a large margin from the fundamental indicators. For example, Nvidia’s price-to-sales ratio is 144, while the S&P 500 index is only around 3. This illustrates that even companies with more realistic businesses are valued by investors well above their actual financial metrics, which let’s talk about the quantum technology sector, where valuations are even more speculative. Quantum computers can become a threat to the topic of artificial intelligence in the sense that markets are always looking for new hype. AI, which depends on quality data, is gradually losing its appeal due to limitations in access to this data. Elon Musk, for example, stated that the lack of high-quality data sets for training is becoming a problem for the development of AI. In such a situation, investors looking for new risk opportunities may turn their attention to quantum technologies. Although the subject of quantum computers is still limited, the breakthrough technologies in this field are among the most interesting long-term investment topics. Despite the volatility, we focused on companies with capitalizations over $150M that have working products and trade in the US. These include Ionq, Rigetti Computing, Quantumscape, Quantum Computing, Defiance Quantum, Navitas Semiconductors and Spectral Capital. The scenario for them will most likely be similar to the story with AI, where the big players gradually absorb the smaller businesses. However, some of these companies will appear in the news headlines more than once, bringing investors hundreds of percent of income. This is possible if influential entrepreneurs support the development of such technologies.