Morgan Stanley says quantum computing could be a $100 billion market one day. Here’s its top stock to play the trend - CNBC

Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuMorgan Stanley says quantum computing could become a market worth more than $100 billion annually by 2040. The bank named Quantinuum its top stock pick to capitalize on the opportunity. The investment bank upgraded Quantinuum to overweight from equal-weight, with a $62 price target implying roughly 88% upside from Wednesday's close. Morgan Stanley built its proprietary framework to judge each company on what it has demonstrated across four main areas: technical progress, execution, manufacturability and broader indicators of progress. The bank gave more weight to technology because that's where it found the strongest evidence and clearest differences between the companies. "Quantinuum stands out on technology and execution: it is furthest along among the pure plays and has the strongest execution record, yet the market assigns it the lowest multiple [on] our 2030 revenue in the group," analyst Joseph Moore wrote in a Thursday note. QNT YTD mountain Quantinuum shares in 2026 However, Moore also warns that different hardware approaches make companies hard to compare, and revenue is still too small to separate them. The quantum computing market could grow to more than $100 billion by 20240 from roughly $10 billion in 2030 if "fault toleration machines reach broad commercial adoption", according to the analyst. "No company has built one yet, and current revenue tells investors little about where these businesses end up," Moore wrote. "Company roadmaps converge on early fault-tolerant systems in 2029-30, so we judge the stocks on how credibly each is progressing toward that window." Morgan Stanley expects the Colorado-based company's revenue to soar to $2 billion in 2030 from approximately $270 million in 2028. The bank's analyst identified 2027 as a critical year for the industry, with Quantinuum's next-generation Sol system serving as "the next most important hardware milestone."What's behind the sell-off in AI neocloud stocks like CoreWeave and Nebius Tobias BurnsBerkshire Hathaway heads for 10th consecutive winning day. What's driving the stockPaulina LikosA second major Wall Street bank this week is telling clients to cash in tech stocks. Here's why Tobias BurnsRead More