A 10 Bagger Like This May Never Happen Again

Well, it's finally happened. Quantum computing has officially moved from a purely speculative research-driven industry into a market with real customers, real earnings, and real companies that will win big. With quantum computing expected to add 1 to2 trillion across industries over the next decade, according to McKenzie Company, it's not often that we get to invest in the birth of a new industry. But we also know not every company is going to succeed. Picking the right stock still matters. And we've seen this pattern before during the early internet days. A $10,000 investment in Amazon's 1997 IPO would be worth more than $35 million today. But Pets.com stock peaked at $14 per share and traded for pennies before eventually disappearing. So the internet thesis was right, but a lot of the individual stock investments were wrong. So like that time we need to find the companies that will succeed long term and are not just speculative hype because the winners will be the stocks that have real customers and real products today not just vaporware promises for the future. So let's start with a company that absolutely has real products and is making millions from them today. Ion Q as we look at four different stocks across the quantum computing industry a market expected to reach up to $2 trillion by 2035. So, there's three areas that I wanted to look at for IONQ. First, what are they building and what is their product's competitive edge? Second, how do their numbers show the company is performing today, not future promises? And third, what risks do investors need to watch out for? What could ion get wrong? And how do we know when to sell? But first, I have a cool tool to show you from this video sponsor, Abacus AI. Chat LLM by Abacus AI is the all-in-one platform for using all the latest AI models. One really powerful feature are their experts. So for example, we can look at this one in finance to look into technical documents like ion's quarterly filings with these experts pulling from specific skills like understanding the financials of a company. So it can both access exact numbers and give smarter answers in its domain. But what makes Chat LLM really powerful is when you combine their agentic approach with specific skills. So I'm going to have it build a website that looks at all the top pureplay quantum stocks so I can get a dashboard view of the market. So while this is running, one of the coolest tools they have are what they call self-improving tasks. These are agents that you task with one goal, give them a metric to pursue, and they will keep on iterating to get better and better on autopilot to increase whatever you're looking for. whether that's engagement on social media or maybe revenue on your website. So, let's check back in on that website. It went ahead and created a theoretical portfolio of all the pure play quantum computing stocks along with breakdowns of the strengths and weaknesses of each one. And I can go in change out which skills it has access to or even connect thirdparty apps as I try to iterate to try to make this website better. Or I could use their image and video models to try to spice it up a bit. And you can try Chat LLM today using the link in the description. It's just $10 to sign up, so click the link in the description to get started. And now, let's take a look at our first quantum stock. Starting with what makes ION Q's quantum computing unique. They build the actual quantum computers, the cabinets, lasers, and trapped atoms that perform the calculations, and those trapped atoms act like CQITS, the quantum version of the bits that exist inside a traditional computer. In order to build a quantum computer, you need to be able to control quantum scale particles. We're talking smaller than an atom, but at that scale, everything is super jittery and hard to control. Building a quantum computer is almost like trying to stack blocks together on a bouncing trampoline. So, some quantum computers try to fight that by just super cooling the entire apparatus, which is why they end up looking like this with 90% of the structure just there for cooling. But Ion Q takes a different approach. They use electric fields to pin individual atoms in place while lasers cool and control them. So it becomes more like sticking a bunch of Lego blocks together that are locked in place. And so even if everything is bouncing around, it still stays somewhat stable. And understanding that there are these different architectures in quantum computing helps us as investors because it's not clear that only one approach is going to win out long term. There's pros and cons to each one, but what's important to investors is ION Q's approach is especially good for solving tricky problems in industries that really value stability and consistency. Think healthcare, defense, and finance, which is also why most of their customers are in those industries. So, let's take a look at the numbers here. Because it's easy to tell a good story, it's much harder to back that up with the data. So, Ion Q reported $80 million this quarter, showing that there is real revenue coming into the company. But more important for investors, total revenue is up 287% year-over-year. And that growth is really what investors in the space are betting on. Not speculative hype, but real growing demand for the future. Now, that being said, a lot of the growth in this company has come from acquisitions. When one company buys another company, their revenue gets added together. And this has led some investors to accuse ION Q of just buying growth until they can get acquired by a bigger company down the line. But then there's another side that argues ION Q's recent acquisition spree is really important to the future of their business. See, Ionq is now expanding beyond just quantum computing into other connected areas. Quantum sensing, quantum networking, and quantum security. Kind of like early computer companies like IBM or Apple didn't just build the machines. They also built a lot of software and other pieces of the ecosystem around those machines. So, Ion Q claims they are working to vertically integrate all areas of quantum computing. And there's two good examples to look at. First, they launched commercial satellite monitoring of deformations on Earth's surface, kind of like an earthquake or a mudslide or even a new building added to the surface of the Earth that can be detected by newer satellite sensors. It's an interesting technology, but it's not actually one that's using quantum computing today. It is an industry that could benefit from that in the future, but quantum computers are not stable enough to be running in outer space at the moment. So, it's very much positioning themselves to gain a foothold now that they can expand into as quantum becomes more mature. A little more on the quantum side is their Clavix multiplex, which is more of a quantum technology designed to deploy quantum security across metropolitan fiber networks. But honestly, the clearest actual sign of vertical integration was their recent acquisition of Skywater, which does semiconductor manufacturing, effectively buying a piece of ion supply chain, so that if Skywater manufactures components for other quantum computing companies in the future, it becomes a genuine pick and shovel business for IOQ under their umbrella. So that's kind of the story here. IONQ diversifies away some risk from betting on one quantum architecture, but now they have to deal with integrating a bunch of expensive acquisitions without losing focus. So, let's take a look at some of the risks here that any investor should know about, and then we'll look at some other even more pure play quantum stocks. So, the first big risk is that Ion Q is competing with other computer architectures. I showed a graphic of five other architectures being researched today and it is entirely possible that a whole different flavor of quantum computing may take off. Kind of like how there are different fields of AI and right now generative AI is getting all the money. One strategy to address this is exactly what Ionq is doing and diversifying through acquisitions. Risk number two is all around execution and governance. The company has a relatively new CEO after a big Pentagon contract went away. And this has been combined with fears around them buying inorganic growth, which has led to increased short interest against the stock. At the end of the day, for any company, if you don't trust management, it's hard to trust that the stock will rise. And then the third risk is just around the quantum timeline. See, Ion Q's value today assumes that quantum is going to come relatively soon, and the current growth will not only continue, but accelerate as new use cases are brought online. So, if that growth takes 20 years to show up, investors today are still pretty likely to lose money. Advancing technology is not enough at this value, they need to hit their technical milestones quickly and aggressively keep moving forward. You know, quantum supremacy or quantum advantage is a big buzzword today, but that alone is not going to build a business. But next, let's move to the most pure play quantum computing stock on this list before we move on to some other parts of the quantum computing market. So, stock number two is a newly public company with some serious technology, some serious financial backers, but also some serious risks. One of the earliest areas that we're seeing use cases for quantum computing is in cyber security. When you log into your bank or post a story on Instagram, all that data is encrypted in transit and it uses this public key that supposedly is unbreakable. But a powerful enough quantum computer could actually break those encryptions. Researchers call the moment that that happens Qday. No one knows when it will happen, but attackers can steal encrypted data today, save it, and then try to open it later. So companies and governments have to prepare before that quantum computer even exists. And that brings us to our next stock, Quantinuum, ticker symbol QNT. This company already sells cyber security tools built with quantum technology in mind. But the real reason investors are interested in this stock is the machine that they're currently building. Quantum launched Helios at the end of last year, calling it the world's most accurate quantum computer. It has 98 highfidelity physical cubits and Quantinuum has demonstrated 48 error corrected logical cubits on the machine. Now, every quantum computing company likes to advertise its cubit count as if that tells you how powerful the machine is. In reality, it's almost impossible to compare those numbers across companies because nothing is standardized here. Like D-Wave, for example, just announced a 17 cubit gate model machine, but they also have a quantum annealing machine with thousands of cubits. You know, it's not like a two terbyte storage drive, which is basically the same from any company. In quantum computing, everything is so new that how you use those limited bits, how stable they are, and how good they are at error correcting all has a huge effect on how powerful the machine actually is. And continuum's Helios really aims to maximize those limited cubits. Building their own software interface to make programming more similar to a classical computer. You know, I actually wrote a program for a quantum computer several years ago on sort of an R&D machine. It was actually relatively easy. You just code in a normal language like Python and then they just have a library that deals with all the calculations that need to live on the quantum machine. And I'll actually share the company I did that with at the end of the video. I actually own their stock as well. But a big reason investors and customers are interested in Quantinuum is their unique approach to building machines with a huge emphasis on error correction. So like ion Q, quantinuum uses ion trapped cubits which is the most stable approach. But Helios moves these atoms in a unique way using electromagnetic currents on this ring architecture. So charged ions can be stored in the ring and then sorted at a junction to do the quantum processing and then it has additional caching and storage in the legs. The idea being that you could build thousands of these junctions, kind of like a city street grid, and based on the path that the ion takes, you can calculate a larger and larger number of logical steps, which is the building blocks of any computer. The technology should therefore be extremely scalable, but it has not been proven at the same commercial level. Continuum just reported earnings and the stock actually jumped about 20% right after with a beat in expectations but still with only around $8 million in revenue for their first quarter. Now their growth is high up 279% year-over-year and they've announced a partnership with Oracle to deploy Helios to Oracle's cloud meaning anybody with a laptop that can connect to the internet could use their quantum computer. The company's price is also one of the most reasonable in the space, which for a growth industry like this generally means investors are expecting less growth here, and low expectations can make for a good investment if the company can outperform. But let's take a look at some risks here. Every quantum computing company has some of the same risks. It's a new market. The revenue is not recurring, and none of these stocks are profitable. So, this is not an industry where I would be putting 100% of my portfolio into, and it probably wouldn't even be a core holding. But the opportunity is just so great that it's an industry that's worth keeping an eye on while it's still early. But with Continuum, there's one big risk that stands out here, the biodal outcome risk. Long-term, this stock is likely a binary play, either a huge winner or a huge loser. Unlike a big diversified tech company, almost the entire value here rests on Quantum succeeding, and there's very little room to be mediocre. If they can scale, this stock can become a multibagger very, very quickly. But if they can't, there's not a lot of value to prevent the stock from dropping significantly from here. Now, this is a very new company. They've only reported one official quarter of earnings. So, personally, I'm going to be sitting on the sidelines and watching this stock until they have one to two more quarters under their belt to see a little more track record before I buy in. But, let's now look at a company on the far other side of the spectrum. This stock is hugely profitable and is building the tools required for building and networking quantum systems. And after that, we'll look at my overall favorite quantum computing stock. And if you've liked this video so far, consider subscribing. Most people watching right now are not subscribed. So, here's the deal. If you have watched, let's say, three or more of my videos and you liked all of them. Just subscribe. Doesn't cost anything. And if this is your first or second video, no worries. I'll let you watch a couple more to decide if you like me or not before you actually subscribe. Deal. Okay. Let's move on to stock number three. So while a lot of other flashy quantum stocks have been getting headlines, Coherent is just in the background quietly building the photonic and laser systems, the precision tools that every quantum computer and architecture will very likely depend on in the future. Now Quantum today is a very small part of this business. Most of their photonic tools go to semiconductor companies and telecoms, but the stock is up over 400% since I covered it just over a year ago. So hopefully some of you got in early the last time I covered quantum stocks. But today with massive demand for optical networking, rising revenue, and the company achieving profitability, I think this stock has some serious legs as the quantum industry starts to grow underneath it. So let's start with coherence technology. You may have been asking this whole time, what is quantum computing useful for? Well, it's good for simulations like in chemistry, but one of the biggest use cases for quantum computing is actually how it can improve AI. Take science as an example. A quantum computer can simulate how molecules behave at the quantum scale and then give an AI model new data it can use to make better predictions. And because AI and quantum are so closely tied together, the same companies buying AI chips and networking equipment today will very likely be the same ones investing heavily in the quantum supply chain in the future. And Coherent is building a key part of that supply chain. Photonix, the technology used to create, control, and communicate using light. So, here's how this fits in with quantum. Look at ion Q as an example. Their machines use lasers to cool, control, and read their trapped ions. And so, if that light changes wavelength or loses power or picks up noise, the machine makes more errors. So, Coherent builds the lasers, fibers, and optical components designed to keep that kind of light precise. They're really tapped into all parts of the market because if you need to send a signal over a long distance, you need their stuff because distances amplify errors. But also, if you're working with very small systems like are now being used in portable electronics or you're working with inherently unstable quantum systems, you need a very high degree of precision in your components. And Coherent also specialized in creating optics that still work at the cold temperatures currently required by most quantum systems. So, Coherent is not a pureplay quantum company by any stretch. In fact, most of their revenue comes from the AI space today. This is a chart of the company's revenue. They hit $2 billion in their most recent quarter with most of that driven by data centers and communications. So, for this company, anything that involves manipulating light is in their wheelhouse. They even do optics for laser cutters and welding. But with their recent growth of over 30% year-over-year, a lot of that is being driven by data center buildout. But the best part of this company is this number around a quarter billion dollars in net income. It's a company that is printing profit right now. And that's why this stock's value is only slightly higher than its comparable industry. And it has way less uncertainty than the other stocks that we've seen. But as the quantum supply chain grows in importance, this company is really well positioned to grow with it. But with that said, there is one big risk that we need to watch out for here. Segment risk. Right now, 75% of this company's revenue is coming from data centers. So, if AI spending slows, this stock drops the next day. Revenue from quantum is not going to be substantial for at least a few years. Right now, their optics are used in research stage companies and some quantum labs. So, as the quantum market grows, we would want to see this segment grow at at least the same rate. Otherwise, our thesis here would be broken. One other note, they were just named one of America's best companies in 2026. don't think that affects the quantum thesis, but I want to be complete on this channel. But, okay, let's move on to our last full stock, and then after that, I'll share one bonus stock that I've covered before, so that won't be a full section. And let me know below if there are other quantum computing stocks I should look into, especially stocks that don't actually make the machines. I'm really interested in the supply chain and companies that aren't really considered quantum stocks yet. So for our final stock, we are shifting from the high-risk startups into the ultimate diversified tech play. Google is a massive company, but their quantum AI division is quietly laying the groundwork for this entire industry. And so if you don't understand Google's place in quantum, you don't understand the rest of the industry as a whole. So Google Quantum AI is a research division within the larger company and they have been a leader in quantum breakthroughs since 2012. And on their site, they actually lay out the roadmap for how they plan to achieve a scalable quantum system. And Google's plan is pretty simple. They have a huge user base and some of the most advanced AI on Earth. And so they need quantum machines that are just good enough to make their existing products better, especially quantum enabled AI models. It's a bit of a moonshot, but it's one that Google has been heavily investing in. Google X is what Google calls their moonshot factory where projects like self-driving cars, delivery drones, and some of the first AI coding agents came from. Google Quantum has actually graduated from the Moonshot factory into its own division with Google CEO saying that quantum today looks like AI from 5 years ago. >> I would say quantum is there where maybe AI was 5 years ago. So I think in 5 years from now we'll be going through you know a a very exciting phase in quantum. >> Google is also investing externally. They along with some other big tech companies put $150 million into Sandbox AQ a company focused on quantitative artificial intelligence for enterprises using techniques from quantum computing. And that investment makes sense since Sandbox AQ actually spun off from Google in 2022. Google is deep into quantum R&D and they already have the scale to commercialize it in the future. But that scale is also their biggest risk. The company brought in over $ 109 billion last quarter, so it's going to be quite a while before Quantum is really moving the needle on this stock. But that said, I am very happy to own this company. It's not going to 10x in price like maybe some of the others, but it's also less likely to drop to zero. I also own one other stock that you might not even think of as a quantum computing company. And around a year and a half ago, I included it in this video. Every stock on that list has now run up a bunch in price except for this one, IBM. So, you can watch this video to see the full breakdown as well as three other pretty interesting quantum computing stocks.