As the new year approaches, it’s not hard to imagine that many risk takers are wondering what the next move will be in the fast-paced field of quantum computing. Undoubtedly, artificial intelligence (AI) remains the go-to revolutionary theme to watch for in the new year, especially as a monetization boom of sorts hits, and agentic AI starts to garner serious momentum.
As the AI trade plays out, though, let’s not forget about the quantum trade, especially as some of the biggest innovators in the space get a tad closer to the “inflection point” that some tech visionaries have been looking for. Like it or not, quantum computing tech has transformative potential.
And while there are even larger unknowns surrounding the near-future trajectory of the top players within the space, I do think that longer-term investors who are young, with long investment horizons, might wish to stay up to date with the new developments surrounding the space, which are sure to keep flowing in over the coming years, even as AI news stays mostly in the spotlight.
Could more quantum advancements be made in the new year?
Undoubtedly, could we be dealt another Alphabet (NASDAQ:GOOG | GOOG Price Prediction) Google Willow-like breakthrough that powers all quantum computing stocks higher in the new year?
It’s tough to say, but I have a feeling we have not heard the last from Willow, and it’s like, as firms, large and small, look to gain some sort of quantum advantage. We’ve come a long way in the past year, whether we’re talking about error correction, qubit scaling, or noise resistance.
As the number of qubits grows, while noise resistance and error correction get even better, perhaps it’s not all too far-fetched to envision quantum computers getting larger and perhaps a heck of a lot more useful in the next couple of years. Either way, here are the three quantum stocks I’ll be keeping on my radar in the new year.
IonQ
It’s been a turbulent year for IonQ (NASDAQ:IONQ) shares as well as the rest of the quantum computing pure-plays. That said, shares of IonQ are still up, though modestly (up 15% year to date at the time of writing) after the latest 40% pullback from its peak. While the speculative appetite for pre-revenue stocks could stay muted in the new year, especially if the AI trade begins to lose steam, I wouldn’t shy away from the names on weakness if you’re a believer in the technology and have a long-term perspective.
Recently, Jefferies started the quantum stocks off on a bullish note, with IonQ coming in with a price target of $100 per share. Undoubtedly, Jefferies seems to be a fan of the trapped-ion technology as well as the partnership potential. I’d say he’s right to be. The most striking thing is that Jefferies isn’t alone with its $100 per-share price target. I’ll admit, it’s the sky-high price targets and the implied doubling in the share price that has my attention when it comes to the name.
Though it seems like a stretch to think IonQ shares could double from here, I do think that it’s definitely possible if things go well for IonQ in the new year and new milestones are broken while more investors warm up to the quantum scene. It’s a real, compelling technology. Though risks and uncertainties regarding its commercialization are bound to remain for years to come, as rivals compete to advance the technology.
Alphabet
For those who don’t have stomachs to withstand a steep 50% pullback, perhaps a blue chip like Alphabet might be a better bet. It’s an AI leader with Gemini 3.0 picking up traction, and it soon might grow to become one of the top quantum leaders with its Google Quantum AI business. Undoubtedly, Willow is advancing at an impressive pace, and it will be very interesting to see if Google’s quantum computer can boast over 1,000 physical qubits by the summer of next year.
Up ahead could be 1,000 qubits, and longer term, we may very well be on the road to 1 million qubits at some point over the next decade. It’s hard to tell how quickly quantum computers will scale, but Alphabet is a fantastic bet to play the space, especially now that shares are down around 5% from their recent highs.
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