The quantum computing revolution is no longer confined to the realm of theoretical physics. As the industry transitions from experimental prototypes to scalable, enterprise-ready systems, infrastructure providers like Keysight Technologies are emerging as pivotal players. Keysight’s recent deployment of a 1,000-qubit quantum control system (QCS) with Japan’s National Institute of Advanced Industrial Science and Technology (AIST) marks a watershed moment—not just for the company, but for the entire quantum ecosystem. This achievement cements Keysight’s position as a market leader in a high-growth segment where early movers stand to capture outsized returns.

Strategic Positioning in the Quantum Value Chain

Quantum computing is a multi-layered value chain, with infrastructure and control systems forming its backbone. While hardware pioneers like IBM and Google dominate headlines, the ability to manage and scale quantum processors—through precision control systems—remains a critical bottleneck. Keysight’s QCS, now operational at AIST’s G-QuAT center, addresses this gap by enabling precise synchronization, noise reduction, and phase coherence across 1,000+ superconducting qubits. This is no small feat: as qubit counts rise, the complexity of control systems increases exponentially. Keysight’s solution, built on a scalable architecture and proprietary RF performance, is a testament to its engineering prowess.

The collaboration with AIST is more than a technical milestone. It aligns Keysight with Japan’s national quantum strategy, which aims to position the country as a global leader in quantum-AI fusion technologies. The two organizations have formalized their partnership through a Memorandum of Understanding (MoU), focusing on industrializing quantum technologies, standardizing protocols, and advancing low-temperature electronics. This strategic alignment with a key government institution not only validates Keysight’s technology but also secures long-term access to cutting-edge R&D and potential commercialization pathways.

Long-Term Growth Potential

The quantum computing infrastructure market is projected to grow at a compound annual rate of 20.5%, surging from $1.42 billion in 2024 to $4.24 billion by 2030. Keysight’s QCS, already adopted by academic institutions, startups, and industry leaders like Fujitsu and RIKEN, is well-positioned to dominate this segment. The company’s recent Q2 2025 financial results—$1.31 billion in revenue and $1.70 in non-GAAP earnings per share—underscore its ability to scale while maintaining profitability. With $250 million allocated to R&D in the same quarter, Keysight is reinvesting in its quantum portfolio, ensuring its systems remain at the forefront of innovation.

A reveals a stock that has consistently outperformed broader market trends, driven by its pivot into high-margin, high-growth sectors like quantum computing. Analysts project that Keysight’s quantum engineering division could represent a significant portion of its revenue within the next decade, given the accelerating demand for control systems in fault-tolerant quantum architectures.

Investment Case: Enabling Quantum Advantage

For investors, Keysight’s role in enabling “quantum advantage”—the point at which quantum computers outperform classical systems in practical applications—is a compelling catalyst. The company’s QCS is not just a component; it is a foundational enabler of the hybrid quantum-classical systems that will power the next era of computing. By integrating with GPUs, TPUs, and QPUs, Keysight’s systems are preparing enterprises for a future where quantum computing optimizes logistics, drug discovery, and financial modeling.

Moreover, Keysight’s early mover advantage in quantum control systems positions it to benefit from the “infrastructure first” phase of the quantum revolution. As noted by Dr. Eric Holland, Keysight’s General Manager of Quantum Engineering Solutions, control systems are the “bidirectional bridge” between classical and quantum worlds. This critical role ensures that Keysight will remain indispensable even as hardware vendors diversify their offerings.

Risks and Opportunities

While the quantum market is nascent, competition is intensifying. Companies like Quantum Machines and startups in the control systems space are vying for market share. However, Keysight’s established reputation in high-precision test and measurement equipment, coupled with its deep partnerships in academia and industry, provides a moat that newer entrants may struggle to overcome. Additionally, its integration with hybrid computing environments—where quantum and classical systems work in tandem—addresses a near-term use case that could drive rapid adoption.

Conclusion: A Strategic Bet on the Future

Keysight Technologies is not just selling hardware; it is building the infrastructure that will underpin the quantum age. Its 1,000-qubit QCS with AIST is a testament to its leadership in a segment poised for exponential growth. For investors, the case is clear: Keysight’s strategic positioning in the quantum value chain, robust financials, and partnerships with global R&D hubs make it a compelling long-term bet. As quantum computing transitions from theory to reality, Keysight stands at the intersection of innovation and infrastructure—a position that could deliver outsized returns for those who act now.