The smartest quantum computing stock to buy for 2026 - MSN

Understand this faster with AI
Quantum computing stocks have attracted significant investor attention, especially over the last year. Its exponentially faster computing power and potential for productivity gains have prompted investors to bid many stocks in this category up to stratospheric highs. The high valuations have made investing in many of these stocks extremely risky. That might mean interested investors may want to take a more indirect approach to investing in this sector. In other words, it arguably makes sense to consider a more diversified tech giant such as Google parent Alphabet (GOOGL 0.80%) (GOOG 0.85%). Image source: Getty Images. Why Alphabet? Admittedly, investors know Alphabet best for Google Search, Android, and perhaps, more recently, Google Cloud and autonomous vehicle company Waymo. Also, Alphabet doesn't detail many of these business segments or quantum computing in its quarterly reports, which might dissuade investors interested only in the company's quantum technology. However, Alphabet is a company with a $4 trillion market cap, and it is an artificial intelligence (AI) pioneer. Those attributes give it the resources and the in-house knowledge to pursue a technology like quantum computing, and it has done just that. Its quantum chip, called Willow, can perform the standard benchmark calculation in five minutes, one that would take a traditional computer an estimated 10 septillion years! Also, Willow can reduce errors as it increases the number of quantum bits, called qubits. Error rates have tended to increase with the number of qubits, making that breakthrough all the more significant.Advertisement Moreover, start-up quantum computing companies like IonQ and Rigetti Computing are generating tremendous losses and must spend precious capital simply to keep their doors open. In contrast, Alphabet can afford to make massive investments in this technology. Where to invest $1,000 in 2026? The S&P is at all-time highs. UBS says it could climb to 7,500 by 2026. Meanwhile, Bill Gates is sounding the alarm, warning many investments could be “dead ends."So where should investors put their money right now? That’s the question The Motley Fool’s analysts set out to answer. After weeks of deep research and debate, they just released a brand-new report revealing their 5 highest-conviction stock recs for 2026 and beyond. Continue › In 2025, it pledged between $91 billion and $93 billion in capital expenditures (capex). It also generated $74 billion in free cash flow over the trailing 12 months, a figure that does not include capex spending. To be sure, it probably allocated most of that capital to its AI-related efforts. Nonetheless, one can assume that quantum computing claimed a significant share of that capital as it works to meet a milestone of developing a large, error-corrected quantum computer that can control 1 million qubits. Such a breakthrough could make Alphabet a top quantum computing company going forward. CollapseNASDAQ: GOOGLAlphabetToday's Change(-0.80%) $-2.68Current Price$330.10GOOGLYTD1w1m3m6m1y5yPriceVS S&PKey Data PointsMarket Cap$4.0TDay's Range$327.70 - $334.5052wk Range$140.53 - $340.49Volume1MAvg Vol36MGross Margin59.18%Dividend Yield0.25% Alphabet as a quantum computing stock Instead of investing in a pure-play start-up, buying Alphabet stock could be the smartest play to gain exposure to the quantum computing industry. Indeed, investors should not expect any detailed mention of quantum computing in its financials for the foreseeable future. They should also expect that the technology will not make a significant contribution to Alphabet's financials anytime soon. Nonetheless, its tremendous resources and breakthroughs in quantum computing likely mean Alphabet is going to be a force in this industry. That technical prowess and the company's financial stability should offer investors safety and success as they seek to profit from this emerging technology.
Tags
Source Information
Discussion
0 professional contributions
Sign in to join this professional discussion.
Be the first to add a constructive contribution.
