Is Quantum Technology Worth Your Investment Today?

Martin Shkreli is back in the spotlight... with a flamethrower.

In a post that ricocheted around finance subreddits and X (formerly known as Twitter), the infamous "Pharma Bro" called quantum-computing stocks "worthless."

He dismissed the entire field as slow, fragile, and fundamentally impractical. On Reddit, he summed it up this way:

The word quantum sounds cool. That's really it. The companies lie. The CEOs are going to jail (at least a few of them).

Yes, that's a bit rich coming from Shkreli. Back in 2018, he was sentenced to seven years in prison for securities fraud (committed while previously heading a hedge fund).

But the post raises some legitimate questions...

What, exactly, is the current state of quantum computing – and why are investors suddenly paying attention again?

Today, we'll take stock of the quantum corner of the tech sector, see where the technology truly stands today, and discuss what its future could bring for investors.

Quantum Computing Is Back in the News

In the late 2010s, you'd regularly hear about quantum computing as an emerging technology ready to change the world. It was mentioned right alongside artificial intelligence, blockchain technology, and robotics.

Over the past few years, quantum computing has largely slipped into AI's shadow. But now, it's back in the headlines.

On October 22, Google announced it had developed a new quantum‑computing algorithm called Quantum Echoes. It's reportedly 13,000 times faster than the most advanced classical computing algorithm.

Just a few days later, IBM (IBM) added fuel to the fire. The company revealed that one of its key quantum‑computing programs can now run on regularly available AMD chips. In plain English, that means ordinary computer hardware – the chips used in everyday devices – can now handle parts of the complex calculations that quantum machines need.

To investors, it looked like another sign that quantum computing might finally be inching toward practicality. Shares of both IBM and AMD climbed nearly 8% on the news.

Adding to the swirl of attention, the Wall Street Journal reported last week that a number of quantum-computing companies – including IonQ (IONQ), Rigetti Computing (RGTI), and D-Wave Quantum (QBTS) – were in talks to give the federal government equity stakes in exchange for funding.

That's part of what got Shkreli's attention, judging by his posts on X ("government is not a VC," he wrote on Oct 23). And it's a hot topic right now...

The U.S. government has already established stakes in Intel (INTC) and MP Materials (MP) in a push to lock in important technologies and resources. Those moves showed that Washington is willing to put real capital behind strategic sectors. And now, that has spread to quantum computing.

So what's real here and what's smoke? Is quantum computing on the cusp of investible, real-world use? Or is this all just more hype around a technology that will never deliver?

The Tech Behind IonQ (IONQ), Rigetti Computing (RGTI), and D-Wave Quantum (QBTS)

Imagine trying to solve a maze with a computer.

A "classical" computer might move step by step, testing one path after another until it finds the exit.

Using a quantum computer, though, would be like exploring every corridor at once. It can weigh all possible paths simultaneously and then settle on the most likely route to success.

Put simply, quantum computing is a way of using the quirks of physics to handle information in ways classical machines can't.

That's the power that excites scientists and investors alike... the promise of solving problems too difficult for today's most powerful supercomputers.

IonQ (IONQ), Rigetti Computing (RGTI), and D‑Wave Quantum (QBTS) are three of the major names trying to bring this concept to market.

IonQ builds machines that use charged atoms – ions – held in place and guided by lasers. Each ion acts as a qubit (the basic unit of information in quantum computing). And its technology has confidence behind it... since IonQ has drawn partnerships with Amazon Web Services and Microsoft (MSFT) to make its systems available through the cloud.

Rigetti takes a different approach. Its quantum chips use superconducting circuits cooled to near absolute zero, so electrical signals can move without resistance. Rigetti lets clients to use its machines to build their own quantum programs through its Quantum Cloud Services platform. And it has demonstrated real-world success by winning contracts with the U.S. government and research institutions.

Canadian-based D‑Wave focuses on a technique called "quantum annealing." It's particularly good for optimization problems – like scheduling airline routes, reducing delivery times, or designing more efficient power grids. While D‑Wave's approach differs from "universal" quantum computing, it's one of the few companies already offering commercial‑scale systems to paying customers.

All three companies are racing to prove that quantum computing can move from the lab into the real economy... and that there's real money to be made along the way.

How Big Is the Quantum Market Opportunity?

According to McKinsey's 2025 Quantum Technology Monitor, the overall quantum industry could pull in as much as $97 billion in annual revenue by 2035 – and nearly $200 billion by 2040.

Quantum computing, specifically, is expected to capture the lion's share of that money. This area is set to grow from just $4 billion today to between $28 billion and $72 billion over the next decade.

Boston Consulting Group paints an even brighter picture. Its long-term forecast projects $450 billion to $850 billion in global economic value by 2040... And that would create a $90 billion to $170 billion market for quantum hardware and software providers.

That's roughly the size of today's entire semiconductor-equipment market.

The public sector isn't standing still, either. Governments all over the world have announced more than $10 billion in new quantum initiatives this year alone. Take a look...

Banks such as JPMorgan are testing quantum algorithms for risk modeling and portfolio optimization. In aerospace, companies like Airbus and BMW are using quantum methods to find lighter materials and more efficient logistics. And pharmaceutical giants like Boehringer Ingelheim are partnering with Google to model molecules that could lead to new drug discoveries.

And it's not just about computing. Quantum communication – essentially hack-proof data transmission – is projected to become a $10 billion to $15 billion market by 2035, according to McKinsey's analysis. Governments currently account for more than half of all spending, but telecom companies and cybersecurity firms are quickly jumping on board.

Meanwhile, quantum sensing – using ultra-sensitive detectors to measure gravity, magnetism, and time – could reach $7 billion to $10 billion within the same time frame. This technology could help with navigation, medical imaging, and resource exploration.

The numbers suggest this is a technology moving from theory to application. But some folks are less optimistic about these projections. Let's cover the reasons why...

Is the Quantum Opportunity Overhyped?

For every bullish forecast, you'll hear a chorus of skeptics. They argue that the business payoff for quantum technology remains distant, limited in scope, and vulnerable to competition from conventional computing and cryptography.

Take Google's announcement last week about Quantum Echoes. The company said its new quantum computing algorithm could advance drug discovery and materials science.

But as exciting as this might sound, even Google admitted that its new algorithm would, on its own, have limited practical uses.

This gets at a deeper issue... Capability doesn't necessarily equal usefulness.

We've seen what industries hope quantum will do. But according to experts like physicist and writer Dan Elton, the number algorithms that show clear quantum advantage over classical computers hasn't grown much since the 1990s.

The most famous examples – Shor's factoring algorithm and Grover's search algorithm – were developed in 1994 and 1996. They were useful for cryptography (Shor's) and searching through large databases (Grover's)... But since then, not many breakthroughs have translated to everyday business problems.

That makes it harder to justify quantum's complexity and cost for most industrial tasks.

Not only that, but the supposed "killer application" of quantum computing – its potential to break modern encryption – is also losing relevance...

Estimates suggest that cracking a standard RSA‑2048 encryption key, for example, would require anywhere from 1 million to 20 million high‑fidelity qubits – orders of magnitude beyond what today's machines can handle.

Plus, building a large‑scale, stable quantum computer is extraordinarily difficult and expensive. Each design faces its own roadblocks.

Scaling up from today's hundred‑qubit prototypes to million‑qubit, fault‑tolerant machines could take another decade or more, if it happens at all.

MIT computer scientist Scott Aaronson, one of the field's leading voices, warns that the public and investors have been misled into thinking quantum computers will instantly outpace classical ones on every task.

In reality, he says, quantum speed‑ups will likely only have narrow uses such as molecular simulation or cryptography.

In other words, quantum computing is advancing – but it's not magic. And transforming physics breakthroughs into business value is still a slow, uncertain journey.

Is Quantum Technology Worth Investing in Today?

So, is any of this technology investible right now? The short answer: not for most people.

Quantum computing may be exciting, but investors shouldn't chase the hype. Stocks like D-Wave Quantum (QBTS), IonQ (IONQ), and Rigetti Computing (RGTI) may make headlines... But they're not yet making money.

Each company is deeply unprofitable, burning tens of millions of dollars in cash while revenues struggle. We can see this in our proprietary Stansberry Score for each company:

As you can see, QBTS, IONQ, and RGTI each fall short of the minimum investible grade we recommend (60+).

A much safer way to gain exposure to the long-term potential of quantum technology is through the established tech giants already leading research and partnerships...

Companies like IBM, Google (through Alphabet), Amazon (AMZN), and Microsoft (MSFT) have the scale to absorb long-term R&D costs. Quantum might not move the needle today, but if and when the technology takes off, their shareholders will benefit... And because these companies make money on other tech too, investors don't have to bet the farm on a science experiment.

Readers who are interested in tracking genuine, actionable opportunities in emerging technology should look to our colleagues at Stansberry Venture Technology and Stansberry Innovations Report...

These publications focus on the technologies of tomorrow... but they point toward the companies and breakthroughs with real, investible prospects today.

Our colleague Whitney Tilson is going one step further... harnessing cutting-edge AI tech for his subscribers in Stansberry's Investment Advisory.

While AI has beaten expectations through sheer scale, quantum is still struggling to bring its theoretical potential into reality. Investors, take note... This technology may be powerful, but it still has a long way to go.

Good investing,

John Robertson

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