Are you ready for a quantum leap?
No, this isn't the 1989 TV show about the scientist who gets trapped in time after a failed government experiment and must jump from one body to another. And no, it's not a 2022 reboot either.
Related: Analyst Reveals High-tech stocks to Buy in 2025
This is real, or will be soon, according to those who know.
Quantum computing is one of the major areas of emerging quantum technology and is generating a lot of buzz right now.
This field of computer science applies the laws of quantum mechanics to simulate and solve complex problems that are too difficult for the current generation of computers.
Don't miss the move – SIGN UP for TheStreet's FREE daily newsletter
While today's computers use binary electrical signals to represent ones or zeros, quantum computers use quantum bits or qubits, which are subatomic particles.
“Digital computers have made it easier for us to process information for decades,” consulting firm McKinsey said in a statement. April report. “But quantum computers are poised to take computing to a whole new level.”
McKinsey said quantum computers have the potential to work with better algorithms that could transform machine learning in a wide range of industries, from automotive to pharmaceuticals.
Google makes announcement about quantum chip
Quantum computers could accelerate the arrival of autonomous vehicles and companies like Ford (F) general motors (G.M.) Volkswagen (VLKAF) and numerous mobility startups are running video and image data through complex neural networks with the goal of using ai to teach a car to make crucial driving decisions.
“Over the next few years, the major players in quantum computing, as well as a small group of startups, will steadily increase the number of qubits their computers can handle and improve how the technology works,” McKinsey said.
Related: Analyst Renews Tesla Stock Price Target Due to Musk-Trump Connection
But none of this is going to happen anytime soon.
The company's survey of technology executives, investors and quantum computing academics found that 72% believe that by 2035 there will be a fully fault-tolerant quantum computer, that is, a computing system that will continue to function correctly even in the presence of errors or failures.
The remaining 28% of respondents believe this milestone will not be reached until 2040 or later.
On December 9, Hartmut Neven, vice president of engineering at Google (GOOGLE) introduced Willow, the technology giant's latest quantum chip.
“Willow can reduce errors exponentially as we scale up the use of more qubits,” Neven, founder and director of the Quantum ai Lab, said in a blog post. “This solves a key challenge in quantum error correction that the field has pursued for nearly 30 years.”
Additionally, Willow performed a standard benchmark calculation in less than five minutes that would take one of today's fastest supercomputers 10 septillion years, a figure that far exceeds the age of the Universe.
Quantum Computing stocks Soar Higher
Investment firms have been investigating quantum companies and recently published reports for IonQ. (IONQ) Quantum D-Wave (QBTS) and Rigetti Computing (RGTI) .
IonQ is a quantum computing hardware and software company. D-Wave develops quantum computing systems and offers software, cloud services and professional solutions for various industries, while Rigetti designs quantum computers and offers cloud-based quantum services.
IonQ shares are up 206% year over year, while D-Wave Quantum is up 582.4% in the past 12 months. Rigetti Computing has skyrocketed a mind-blowing 789% compared to this time last year.
“Everyone, investors and customers alike, wants to know when quantum applications can address previously impossible tasks,” Peter Chapman, president and CEO of IonQ, said during the company's conference. third quarter results call in November.
“The answer is (when) the convergence of sufficiently powerful quantum computers, a corresponding application and the ability to manufacture the hardware at scale.”
IonQ CEO says noisy quantum computers can bring value
Chapman said there are two camps or schools of thought on this topic in the quantum world.
“One group believes that near perfection is needed before value can be unlocked,” he said. “If they are right, unfortunately Quantum is still a long way off. The detractors belong to this camp, but their number decreases every day.”
- Apple's main chip supplier is expanding into the US
- Analysts Reveal Tempus ai Stock Price Targets
- Analysts Update GE Vernova Stock Price Target After Investor Meeting
“The other camp, which includes IonQ and others, believes that today's early, noisy quantum computers can provide value even before they are perfected,” Chapman added. “If we're right, it gives us a significant advantage in generating significant early cash collection as we work toward perfection.”
IonQ posted a loss of 24 cents per share last quarter, missing Wall Street's forecast of a loss of 23 cents. Revenue rose 102% to $12.4 million, beating analyst forecasts of $10.56 million.
DA Davidson initiated coverage of IonQ with a Buy rating and a $50 price target, according to The Fly.
The firm believes IonQ represents “a unique and compelling investment positioned to capitalize on the rapid growth of quantum computing,” driven by the growing inadequacy of classical computing to solve complex problems, while citing “leadership in this emerging frontier.” of the company.
Unlike competing IBM architectures (IBM) Google and others, a core technological advantage in the company's trapped-ion qubit architecture offers IonQ greater reliability, precision and scalability, DA Davidson said.
Benchmark raised the company's price target for D-Wave Quantum to $8 from $3 and maintained a Buy rating on the stock.
The firm said sentiment for quantum technology “has clearly shifted in recent weeks,” with multiple announcements from specific industries and companies helping to drive price inflection for the group.
Despite the move, Benchmark said it believes the company's recent balance sheet recapitalization “eliminates much of the risk discount that has been outstanding since its public debut” following a meeting with D-Wave CFO John Markovich, during the Benchmark Discovery Conference.
Craig-Hallum initiated coverage of Rigetti Computing with a Buy rating and a $12 price target.
The company has unique scale advantages that may allow it to achieve equivalence or superiority compared to its direct peers and quantum advantage in the coming years, the firm said.
Related: Veteran Fund Manager Offers Alarming Forecast for the S&P 500
