Should You Forget IonQ and Buy These 2 Tech Stocks Instead?

Quantum computing has seen a surge in investor interest over the past couple of years. That’s for good reason.

Research from McKinsey & Company estimates that the quantum technology market could grow to be worth nearly $100 billion annually over the next decade — and quantum computing will be the largest part of that market. Quantum computers store and process information in a fundamentally different way than the classical computers and digital devices we use today, which allows them to perform certain types of unusually complex calculations exponentially faster than even the most powerful traditional supercomputers.

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IonQ has been one of the most popular quantum computing stocks, but it trades at an expensive valuation given its limited success to date. Plus, it’s a pure play on quantum computing, so there’s a very low floor for the stock if the technology it is developing doesn’t work out as hoped.

So, forget IonQ stock. Instead, if you’re interested in investing in a quantum future, consider these two top-notch stocks as alternatives.

Microsoft (NASDAQ: MSFT) is a tech megacap that’s highly diversified across software, cloud services, and artificial intelligence (AI). For Microsoft, quantum computing is simply one piece of a much larger puzzle. The company has developed a quantum processing chip that it believes could help it scale quantum computer systems to 1 million qubits. Today’s biggest quantum computers have barely surpassed 6,000 qubits.

Additionally, Microsoft would likely benefit tremendously from adding quantum computing to its offerings. That technology could eventually help it unlock new capabilities across its cloud and artificial intelligence businesses. The company’s deeply entrenched customer relationships via Azure cloud, Windows, and Microsoft 365 software would serve as an efficient channel for selling whatever innovations quantum technology might unlock.

The use of quantum computers today is still limited primarily to research. Widespread development of commercial applications and the machines to support them could take years. In the meantime, Microsoft has solid legacy businesses, pays a growing dividend, and has continued to ride current growth trends throughout its operation. Investors can buy the stock and wait for what may come in quantum computing.