{"id":184789,"date":"2025-06-14T22:00:20","date_gmt":"2025-06-14T22:00:20","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/184789\/"},"modified":"2025-06-14T22:00:20","modified_gmt":"2025-06-14T22:00:20","slug":"this-quantum-computing-stock-will-surge-in-2025","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/184789\/","title":{"rendered":"This Quantum Computing Stock Will Surge in 2025"},"content":{"rendered":"\n<ul class=\"yf-1woyvo2\">\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">This company is not a quantum computing pure play, but has invested in refining the technology.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">Pure-play quantum computing companies face financial challenges that could easily diminish their ability to drive long-term returns.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">This tech giant can likely invest whatever is necessary to succeed in quantum computing.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\"><a class=\"link \" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=295d9eef-c720-4b29-ac96-63fbebb0a167&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-nonbbn-kp%3Faid%3D8867%26source%3Disaedikp0000053%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Dkeypoints_pitch_feed_yahoo%26ftm_pit%3D17670\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 stocks we like better than Alphabet \u203a;elm:context_link;itc:0;sec:content-canvas\">10 stocks we like better than Alphabet \u203a<\/a><\/p>\n<\/li>\n<\/ul>\n<p class=\"yf-1090901\">Investing in quantum computing has brought some unusual challenges. Its quantum bits, called qubits, can store any value between zero and one. This factor makes quantum computers exponentially faster than traditional computers, whose bits can only store zeroes and ones.<\/p>\n<p class=\"yf-1090901\">However, quantum computing is also a solution without a problem to solve, dramatically limiting its addressable market. With most companies in this industry unable to generate sufficient revenues, many <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/information-technology\/ai-stocks\/quantum-computing-stocks\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=62c77a33-a502-4363-8c80-f625fa60b2a0\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:quantum computing stocks;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">quantum computing stocks<\/a> have struggled to maintain their stock gains. But amid market conditions, one specific quantum stock could prosper during the remainder of 2025.<\/p>\n<p>    <img fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"Graphic of a quantum computing chip.\" loading=\"eager\" height=\"540\" width=\"960\" class=\"yf-1vr77wf loader\"\/> Image source: Getty Images.         <\/p>\n<p class=\"yf-1090901\">Amid the current state of the market, Google-parent <strong>Alphabet <\/strong>(NASDAQ: GOOGL) (NASDAQ: GOOG) should appear attractive to investors.<\/p>\n<p class=\"yf-1090901\">Admittedly, this may appear to be a baffling choice at first glance. The company generated more than $90 billion in revenue in the first quarter of 2025, with over 99% of that revenue coming from its digital advertising businesses and Google Cloud. Seeing those numbers arguably raises the question of why one should consider Alphabet a quantum computing investment when the technology has no representation in the company&#8217;s financial statements.<\/p>\n<p class=\"yf-1090901\">However, such a strategy makes more sense when considering the state of pure-play quantum computing companies. Without an apparent addressable market, such companies depend on government contracts that fall far short of covering the company&#8217;s operating expenses.<\/p>\n<p class=\"yf-1090901\">The financials of these companies outline the struggle. In the first quarter, <strong>IonQ<\/strong> reported $7.5 million in revenue, a small fraction of its $83.2 million in costs and expenses. Even with $38.5 million in gains on the fair value of warrant liabilities, it still lost $38.3 million.<\/p>\n<p class=\"yf-1090901\"><strong>Rigetti Computing<\/strong> reported a similar story, with revenue of $1.5 million falling far short of the $22.1 million in operating expenses. Interestingly, a $53.3 million change in the fair value of derivative warrant liabilities helped it earn $42.6 million in <a href=\"https:\/\/www.fool.com\/terms\/n\/net-income\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=62c77a33-a502-4363-8c80-f625fa60b2a0\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:net income;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">net income<\/a> for the quarter.<\/p>\n<p class=\"yf-1090901\">Still, investors cannot depend on one-time benefits for long-term profitability, and with operating expenses far exceeding revenue for both companies, such pure-play quantum computing companies look like less attractive options.<\/p>\n<p> Story Continues <\/p>\n<p class=\"yf-1090901\">In contrast, Alphabet does not have funding issues, with $95.7 billion in liquidity and $19 billion in free cash flow in the first quarter of 2025 alone. Its free cash flow does not include the $75 billion Alphabet pledged to spend on capital expenditures this year, leaving it billions to invest in quantum computing.<\/p>\n<p class=\"yf-1090901\">Such investments led to the development of Willow, its quantum computing chip, which it released in December. For one, Willow stands out for its speed, as its chip recently completed a benchmark computation in less than five minutes. That same computation would take 10 septillion (1025) years on a traditional supercomputer, a time period well over the estimated age of the universe.<\/p>\n<p class=\"yf-1090901\">Additionally, the Willow quantum computing chip stands out because it can reduce error rates as the number of qubits rises. Error rates have been a significant challenge for the industry, which has experienced a rise in error rates as quantum computers have become faster.<\/p>\n<p class=\"yf-1090901\">Furthermore, Alphabet will likely develop and release improved versions of the Willow chip over time. Those efforts keep Alphabet competitive in the quantum space and position it to prosper once the technology becomes more applicable to the world&#8217;s problems.<\/p>\n<p class=\"yf-1090901\">Although quantum computing is not currently a primary revenue source for Alphabet, the company is likely the stock of choice in this industry in 2025.<\/p>\n<p class=\"yf-1090901\">That may disappoint investors, as the company does not mention quantum computing in its earnings releases, nor does it report any revenue or funding tied to that technology.<\/p>\n<p class=\"yf-1090901\">Nonetheless, Alphabet&#8217;s free cash flows from other businesses have funded initiatives such as quantum computing. That gives the company ample resources to refine Willow and improve its technology continually. In contrast, many quantum computing start-ups struggle to find adequate funding to stay in business, much less invest in improving their technologies.<\/p>\n<p class=\"yf-1090901\">Ultimately, a stronger financial position and its development of Willow strongly position the Google parent in this industry. Once applications for quantum computing begin to emerge, Alphabet should be in a strong position to capitalize on opportunities.<\/p>\n<p class=\"yf-1090901\">Before you buy stock in Alphabet, consider this:<\/p>\n<p class=\"yf-1090901\">The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a0<strong><a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=dbe8e76a-09c3-4995-89fb-d8b89d39da47&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001088%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_yahoo%26ftm_pit%3D17500&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=62c77a33-a502-4363-8c80-f625fa60b2a0\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 best stocks;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">10 best stocks<\/a><\/strong> for investors to buy now\u2026 and Alphabet wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n<p class=\"yf-1090901\"><strong>Consider when\u00a0<strong>Netflix<\/strong>\u00a0made this list on December 17, 2004&#8230; if you invested $1,000 at the time of our recommendation,\u00a0<strong>you\u2019d have $655,255<\/strong>!*\u00a0<\/strong><strong>Or\u00a0when\u00a0<strong>Nvidia<\/strong>\u00a0made this list on April 15, 2005&#8230; if you invested $1,000 at the time of our recommendation,\u00a0<strong>you\u2019d have $888,780<\/strong>!*<\/strong><\/p>\n<p class=\"yf-1090901\"><strong>Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is\u00a0999% \u2014 a market-crushing outperformance compared to\u00a0174%\u00a0for the S&amp;P 500. Don\u2019t miss out on the latest top 10 list, available when you join\u00a0Stock Advisor.<\/strong><\/p>\n<p class=\"yf-1090901\"><a class=\"link \" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=dbe8e76a-09c3-4995-89fb-d8b89d39da47&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001088%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D17500%26ftm_veh%3Darticle_pitch_feed_yahoo%26company%3DAlphabet&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=62c77a33-a502-4363-8c80-f625fa60b2a0\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:See the 10 stocks \u00bb;elm:context_link;itc:0;sec:content-canvas\"><strong>See the 10 stocks \u00bb<\/strong><\/a><\/p>\n<p class=\"yf-1090901\">*Stock Advisor returns as of June 9, 2025<\/p>\n<p class=\"yf-1090901\">Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool&#8217;s board of directors. <a href=\"https:\/\/www.fool.com\/author\/20245\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Will Healy;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Will Healy<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:disclosure policy;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">disclosure policy<\/a>.<\/p>\n<p class=\"yf-1090901\"><a href=\"https:\/\/www.fool.com\/investing\/2025\/06\/14\/prediction-this-quantum-computing-stock-will-surge\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Prediction: This Quantum Computing Stock Will Surge in 2025;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Prediction: This Quantum Computing Stock Will Surge in 2025<\/a> was originally published by The Motley Fool<\/p>\n","protected":false},"excerpt":{"rendered":"This company is not a quantum computing pure play, but has invested in refining the technology. Pure-play quantum&hellip;\n","protected":false},"author":2,"featured_media":184790,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3164],"tags":[3836,3284,75734,3358,53,16,15],"class_list":{"0":"post-184789","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-computing","8":"tag-alphabet","9":"tag-computing","10":"tag-quantum-bits","11":"tag-quantum-computing","12":"tag-technology","13":"tag-uk","14":"tag-united-kingdom"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/184789","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=184789"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/184789\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/184790"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=184789"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=184789"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=184789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}