Bubble or no bubble, this quantum computing stock should be a long-term winner.Share prices sometimes soar more than the underlying businesses of companies warrant. Buying is intensified as a result of hype and investors' fear of missing out (FOMO). These are the tell-tale signs of a stock market bubble. There's a good case to be made that quantum computing stocks are in a bubble. And all bubbles end negatively, often in spectacular fashion. What's the best quantum computing stock to own if the bubble burst ...

Core Insights - The article discusses the advancements in AI technology by Quantum Computing Inc. (QCi) and IBM, highlighting their respective approaches and market positions in the AI industry [1][2]. Quantum Computing Inc. (QCi) - QCi is focused on developing quantum computers that utilize photons, which can operate at room temperature and be miniaturized, unlike IBM's current quantum technology [3]. - QCi's EmuCore quantum computer is designed for training AI models, offering faster data processing and lower energy consumption compared to traditional computers, although it reported only $384,000 in revenue for Q3 against operating costs of $10.5 million [5]. - The company raised $750 million through an equity offering in October to support its operations [5]. IBM - IBM's AI business generated $9.5 billion in Q3, contributing to total revenue of $16.3 billion, reflecting a 9% year-over-year increase [6][7]. - The company is developing its Nighthawk quantum processor, expected to achieve quantum advantage next year, which would enhance its AI capabilities significantly [8][9]. - IBM reported a net income of $1.7 billion in Q3 and has a dividend yield of over 2%, showcasing its profitability and commitment to returning value to shareholders [9][10]. Investment Comparison - IBM's strong sales and advancements in quantum computing position it as a more attractive investment compared to QCi, which has high operating costs and limited sales [13][14]. - QCi's price-to-sales (P/S) ratio has been significantly higher than IBM's, indicating that QCi's shares are overvalued relative to its sales performance [11][13]. - IBM's consistent dividend payments and established revenue streams make it a superior investment choice in the AI sector [14].

Core Insights - IBM has unveiled its new Nighthawk quantum processor, which is one of the fastest computers globally and is being utilized for various applications including medicine development, battery improvement, and enhancing financial performance [1][4]. Quantum Technology - The Nighthawk quantum processor is approximately 30% more efficient than its predecessor, showcasing significant advancements in quantum computing technology [3]. - The processor operates at extremely low temperatures, reaching 15 millikelvins, which is a thousand times colder than outer space, indicating the advanced cooling technology required for quantum operations [3]. Applications and Industry Impact - Quantum computing is positioned as a new computational tool that can solve previously unsolvable problems, enhancing the capabilities of artificial intelligence rather than replacing it [2][4]. - Companies such as Boeing, Moderna, and HSBC are already leveraging IBM's quantum technology for various purposes, including creating more durable aircraft, developing effective vaccines, and achieving better trading outcomes [4][5]. Competitive Landscape - The United States currently leads in the development of advanced quantum computers, but China is making substantial investments in this field, indicating a competitive landscape in quantum technology [5]. - The U.S. is expected to deploy its quantum capabilities by the end of the decade, highlighting the urgency and importance of advancements in this sector [5].