In a world of headlines and uncertainty, there’s comfort in the study of audacious developments in scientific research. Ever since the days of an old TV show called Quantum Leap, I’ve had an obsession for quantum mechanics. For example, discovering the “observation effect,” which shows how particles change themselves when being observed vs. when they are not, consumed my thoughts in free moments. This element of wonder has extended to quantum computing.

Relative to classic computers that use regular bits, quantum computers use qubits. So when solving a problem, a classic computer tests one possible answer at a time—using 0 or 1 bits— moving step by step until finding the right solution. It works, but it takes time. A qubit can be 0, 1, or both at the same time (thanks to a quantum phenomenon called superposition). This means a quantum computer can explore testing every possible combination at the same time—way faster! That being said, qubits are incredibly delicate. For them to work properly, they need to be kept at unimaginably cold temperatures—15 millikelvin—colder than outer space.

What does quantum computing do for us?

Quantum computers shine when tackling massively complex problems—especially those involving countless moving parts that interact in unpredictable ways. Google has made headlines, claiming its quantum computer solved a complex problem that would have taken today’s most powerful supercomputer 10 septillion years (that’s longer than the history of the universe)—in just 5 minutes. 

Recently (in partnership with Google), scientists have been able to combine digital and analog quantum computers to better replicate physical processes—so-called quantum simulators. The implications of this could be the development of new materials, including medicines that can be used more precisely with fewer side effects. They also could enhance cybersecurity by developing unbreakable encryption and optimize global supply chains. In fact, according to McKinsey, this means industries like chemicals, life sciences, finance, and mobility are expected to see the earliest benefits, potentially unlocking up to $2 trillion in value by 2035.

For individual investors, IBM was an early pioneer in quantum computing, gaining attention when it developed one of the first quantum machines available for public use. While other large tech firms, like Microsoft, Amazon, and Intel have also jumped into the race, the market has also noticed several smaller companies in the space. In 2024, companies like Quantum Computing Inc. and Rigetti Computing saw their stock prices soar 1,712% and 1,449%, despite limited revenue. That is, until Jensen Huang (CEO of NVIDIA) said it’d be many years before quantum computing went more mainstream. "If you kind of said 15 years... that'd probably be on the early side. If you said 30, it's probably on the late side. But if you picked 20, I think a whole bunch of us would believe it." The stocks dropped 20-50% in value following this comment. It’s possible he was  “talking his own book,” as they say, making room for investments he and Nvidia have made. Others, like IBM and researchers at Google, have argued the impact is only 2-5 years away. 

Investing in quantum computing has included governments. In fact, US government spending on quantum computing has more than doubled since 2019, highlighting its strategic importance in national security, scientific research, and technological innovation. Will it continue under the new administration?I believe it will, if not even more.

Like anything new and innovative, challenges remain. Currently, the most advanced quantum computer has only 1,180 qubits, while experts estimate we’d need at least millions to truly revolutionize industries. Plus, quantum computing is expensive. A single qubit costs an estimated $10,000 and requires complex microwave controllers, special cables, and highly controlled environments to function.

For us as investors, it’s important to keep in mind that not every company survives the race to discovery and development. Similar to where Quantum Leap’s main character landed in the time continuum, investing in this still feels like a game of chance—albeit one with great promise.