Forget IonQ: Alphabet is a Much Better Bet on Quantum Computing.
The Motley Fool·2025-12-05 05:30

Core Insights - Quantum computing is emerging as a significant investment opportunity alongside artificial intelligence, with companies focusing on this technology seeing substantial stock price increases [1][4] - IonQ has experienced an 800% stock price increase over the past three years, driven by its trapped-ion computing method, which offers longer functionality and higher accuracy [2] - Despite IonQ's impressive revenue growth of 222% in the most recent quarter, it remains unprofitable, indicating that practical applications of quantum technology may take time to materialize [2][5] Company Analysis - Alphabet is highlighted as a more stable investment option compared to IonQ, as it has established revenue streams from its advertising and Google Cloud businesses, which are already generating significant profits [3][5] - Alphabet's market capitalization stands at $3,833 billion, with a current stock price of $317.22, reflecting a gross margin of 59.18% and a dividend yield of 0.26% [7] - The company is actively developing quantum computing technology, having announced its quantum chip, Willow, which has achieved key milestones in error reduction and computational speed [7] Investment Rationale - Investing in Alphabet provides exposure to potential growth in quantum computing while benefiting from the security of a well-established company with a proven business model [8] - The complexity and challenges of quantum computing suggest that while the technology holds promise, its full realization may not be imminent, making companies like Alphabet more attractive for investors seeking stability [5]