If I Could Only Buy 1 Quantum Computing Stock With $1,000, It Would Be This One.

In recent years, investors have closely followed quantum computing. If successful, the technology could increase computing speeds exponentially.

The problem with this technology is the delicate nature of quantum bits (qubits) and high error rates. Such challenges mean that widespread commercial viability is likely several years away.

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However, companies of all sizes are working to make the technology viable, and if successful, it could dramatically transform companies and the tech industry at large. Knowing this, if I could only invest $1,000, I would choose IonQ (NYSE: IONQ) as my quantum computing stock. Here’s why.

A quantum computing schematic.
Image source: Getty Images.

What about other quantum computing companies?

To be clear, I regard this as one $1,000 investment within a diversified portfolio. IonQ is a risky choice, and I would consider this a speculative investment.

Long-time tech investors might remember that numerous internet information companies emerged before Google’s parent company, Alphabet, became the dominant search engine. Likewise, the quantum computing industry is likely to undergo a similar shakeout.

This poses a significant risk to IonQ and to start-up peers such as Rigetti Computing and D-Wave Quantum. These companies, IonQ included, are all-in on the technology, and it is unclear how they will survive if they fail to become top players in the quantum computing industry.

For the more risk-averse investors, Alphabet and IBM are also quantum computing investment options. The fact that these are established tech businesses bodes well for the stocks. Still, they only earn a negligible amount of revenue from the technology, which makes it debatable whether one can call them “quantum computing stocks” in any meaningful sense.

The state of IonQ

IonQ’s competitive advantages have also eased many of my concerns about the company. It has taken a different path than Google or IBM by utilizing trapped-ion technology. The trapped ions can hold their quantum states longer. That reduces error rates and differentiates the company from its more established competitors.

Moreover, it operates as a quantum-as-a-service (QaaS) model. Thus, it is the only provider natively integrated with Google Cloud, Microsoft‘s Azure Quantum, and Amazon‘s Braket.

Additionally, IonQ is a partner of the industry’s top chip company, Nvidia. IonQ seems to be following Nvidia’s playbook in quantum, which makes the agreement appropriate.

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