The Smartest Quantum Computing Stock to Buy for 2026 - Yahoo Finance
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✦ AI Summary· Claude Sonnet
The Smartest Quantum Computing Stock to Buy for 2026
Keithen Drury, The Motley Fool
January 5, 2026 4 min read
GOOG
-1.18%
IONQ
+4.84%
RGTI
-0.86%
Key Points
Alphabet has a lot to gain by developing its quantum technology in-house.
The tech giant is already seeing real-world applications for its technology.
10 stocks we like better than Alphabet ›
Quantum computing is a difficult area to invest in. It's similar to investing in early-stage biotechs, where there are some promising results, but nothing indicative of true future success. Couple that with how many companies are competing for quantum computing dominance, and it turns into a very difficult area to invest in.
Furthermore, this industry has a lot of hype around it, and some of the pure-play stocks, like IonQ and Rigetti Computing, are seeing their stocks rapidly rise and fall in line with the risk tolerance of the market.
Many investors may want to shy away from this industry because of the volatility and lack of a clear leader, which is fine. However, I think there's a smarter way to invest in the quantum computing realm without needing to expose yourself to high-risk investment that has a huge chance of paying off.
How? Through an investment in Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).
Image source: Getty Images.
Alphabet could see a huge benefit by developing quantum computing technology
Alphabet is a large conglomerate of companies, but it's mainly centered around the Google ecosystem. While Google Search and the ad revenue it generates are the core of Alphabet's business, it's more diversified than that segment.
Alphabet also owns a cloud computing business, Google Cloud. Google Cloud uses computing units from other providers, such as Nvidia's graphics processing units (GPUs), to rent out computing capacity to customers for a wide variety of tasks. However, it has to purchase those GPUs from Nvidia, which is expensive.
Google also developed the Tensor Processing Unit (TPU) in-house in collaboration with Broadcom, which is a step closer to fully building its own computing hardware. However, Alphabet has chosen to develop its quantum computing hardware entirely on its own, which could pay off big-time for its cloud computing business if it succeeds.
If Alphabet can win the race to build the first commercially viable quantum computer, then clients will flock to Google Cloud to utilize this cutting-edge technology. This would have other trickle-down effects, such as more clients using its generative artificial intelligence (AI) model, Gemini. Quantum computing technology is expected to greatly reduce the cost of running artificial intelligence training and inference, which would make Gemini the go-to model if Alphabet can develop a quantum computing advantage.
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