Willow: A Groundbreaking Quantum Computing Chip

Every once in a while, there’s a monumental leap in technology. This week, Alphabet ((GOOGL Quick QuoteGOOGL - Free Report) ) delivered one in the form of its Willow quantum computing chip. The company announced that Willow performed a computation in under five minutes that would “Take one of today’s fastest supercomputers 10 septillion years.”

For context, this number written out looks like this: 10,000,000,000,000,000,000,000,000!

Google, usually a slower-moving behemoth of a stock, soared over 9% for the week, marking its best weekly stretch since April.

Under-The-Radar Quantum Names

Though a well-known “Magnificent 7” company will always steal the headlines, savvy investors who track price and volume action know that the quantum computing revolution began long before the Willow news dropped. For example, Rigetti Computing ((RGTI Quick QuoteRGTI - Free Report) ), a once obscure quantum computing pure play, is up a mindboggling 659% year-to-date.

Image Source: Zacks Investment Research

What is Driving the Move in Quantum Stocks?

Quantum stocks like IonQ ((IONQ Quick QuoteIONQ - Free Report) ) and Quantum Computing ((QUBT Quick QuoteQUBT - Free Report) ) have yet to turn a profit, so why are their stocks rising so rapidly? In short, Wall Street is the ultimate discounting mechanism. Growth investors are willing to pay a premium for groundbreaking technology and “the light at the end of the tunnel”, particularly in bull markets like the 2024 market. Despite the lack of industry profitability, industry leader IonQ expects the total addressable quantum computing market will expand to ~$65 billion by 2030. In other words, the future looks bright.

Want Momentum? Buy this Quantum Computing Stock

Quantum stocks are highly volatile, so traders invest in them should have a high-risk tolerance and a clear understanding of position sizing and risk management principles. Though quantum names are up significantly, one stock offers an asymmetric momentum opportunity.

D-Wave Quantum ((QBTS Quick QuoteQBTS - Free Report) ) is a leader in developing and delivering of quantum computing systems, software, and services. Despite a volatile market, QBTS shares are exhibiting relative strength today. The stock is resetting in a powerful-looking daily bull flag pattern.

Image Source: TradingView

Bottom Line

Quantum computing is the hottest industry on Wall Street. With a bright-looking future, several names are set for even higher prices.