Not IonQ. Not D-Wave. This ‘boring’ blue-chip stock is quietly leading in quantum computing

In recent years, artificial intelligence (AI) has been the driving force behind stock market gains. Investors, always looking for the next big thing, have flocked to companies involved in this field. But AI isn’t the only area with the potential to transform the way things are done in business and at home. Quantum computing has also emerged as a game-changing potential, and investors have turned to companies that are innovating in this area.

Why is everyone so excited about quantum computing? Indeed, it offers the possibility of solving problems that are impossible to solve with traditional computers. Pure play innovators, notably IonQ And D-Wave Quantum attracted the attention of investors as they progressed with their programs – and they sometimes saw their stock prices skyrocket as they progressed.

Now, one might expect a small, specialized company to win in this quantum computing race. After all, they devote all their resources and research efforts to this technology. But these players may not be the biggest winners. In fact, the next “boring” title is quietly leading in the field of quantum computing.

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Quantum computing versus classical computing

Before we dive in, let’s take a quick look at how quantum computing works, starting with an overview of classical computing. The computing we know well and have used for years involves bits treating information as a zero or a one. Quantum computing uses qubits instead of bits, and these processors can store information as zeros, ones, or both at the same time. They can scale exponentially, and all this allows them to tackle big problems and solve them quickly.

Today, quantum computing companies use a variety of techniques to develop qubits and perform calculations, from the trapped ion method to superconducting techniques. The first involves manipulating ions with lasers to calculate, the second involves using silicon etched with special superconducting materials. Businesses are making progress, but challenges such as scale and error correction remain. The idea is to achieve quantum advantage, or the point where quantum computers can solve problems more efficiently and accurately than a classical computer – and validate that the answers are correct.

Although companies from pure-play to tech giants are making significant strides and generating revenue from the sale of their quantum systems, we have not yet reached the moment of quantum advantage on large commercial platforms.

An established giant excels in quantum computing

Now let’s see which company could get there first, or among the first. And it’s a name that has existed since the beginning of the last century: International work machines (IBM -0.85%).

Today, IBM derives most of its revenue from its software business, which brought in $7.8 billion in the third quarter, and also has a strong presence in consulting and infrastructure. All of this helped the tech giant grow revenue 5% to $17 billion in the most recent quarter. This may seem “boring” compared to some AI companies that are generating double- or triple-digit revenue growth. But quantum computing could ultimately represent a significant potential revenue stream for the long-established company.

In June, IBM announced a $10 billion commitment to its quantum computing roadmap over the next five years. Today, the company has the largest fleet of quantum computers in the world, with more than 90 deployed across the cloud and on-premises. The company recently released Nighthawk r2, its most advanced processor to date, using 120 programmable qubits to execute more than 100,000 circuits per second. This is 25 times the throughput of its current Heron platform.

IBM and Algorithmiq, a quantum software company, also recently proposed a new demonstration of quantum advantage, by simulating a heterogeneous quantum material.

IBM chief Arvind Krishna told CNBC in a July interview that quantum computing “will have a measurable impact on our bottom line” in 2028 or 2029. “By the end of the 2030s, we’re now pretty confident that it’s worth a trillion dollars,” he added.

Of course, there probably won’t be a single victorious company in the field of quantum computing. There is room for various techniques and different players to succeed. But right now, IBM is in a great position to be one of the biggest winners, which could spark a wave of explosive growth in the future.