Quantum Computing Can Generate $1 Trillion Economic Value by 2035: 2 Quantum Artificial Intelligence (AI) Stocks to Buy Now

IBM and IonQ are positioned as key players in the burgeoning quantum computing market, projected to reach over $1 trillion by 2035. IBM is monetizing its quantum offerings through cloud access, achieving $1 billion in cumulative bookings and reporting strong Q2 FY25 financials with $17 billion revenue and 15% EPS growth, while targeting quantum advantage by 2026. Pure-play quantum hardware firm IonQ saw Q2 FY25 revenue surge 81.8% to $20.7 million, driven by commercial partnerships and ambitious qubit scaling, though it carries a high 380x P/S valuation and is not yet profitable, offering a high-growth, high-risk exposure to the sector.

Analysis

The quantum computing sector is transitioning from research to early-stage commercialization, with two distinct investment theses emerging through International Business Machines (IBM) and IonQ (IONQ). IBM presents a strategy of leveraging its robust core business to fund a long-term quantum initiative. The stability of its legacy operations is evidenced by Q2 FY25 results, which include $17 billion in revenue (+5% YoY) and $15.5 billion in cash, while its quantum division has already secured nearly $1 billion in cumulative bookings since 2017. IBM's approach of building a software ecosystem with Qiskit, analogous to Nvidia's CUDA, combined with a clear hardware roadmap targeting quantum advantage by 2026, positions it as a diversified, lower-risk play valued at a 21.9x forward P/E. Conversely, IonQ offers a pure-play, high-growth exposure to the sector through its trapped-ion technology. The company is demonstrating rapid top-line growth, with Q2 FY25 revenues soaring 81.8% YoY to $20.7 million and a strong forward guidance of $82-$100 million for the fiscal year. However, this growth is accompanied by significant risk, highlighted by its lack of profitability and an exceedingly high price-to-sales ratio of over 380x.

Key Decisions for Investors

• Investors seeking a balanced-risk entry into quantum computing should consider IBM, as its strong core business, significant free cash flow, and reasonable valuation provide a stable foundation for its long-term growth potential in quantum.
• IonQ represents a high-risk, pure-play investment suitable for portfolios with a high tolerance for volatility; its extreme valuation and lack of profitability must be carefully weighed against its rapid revenue growth and technological differentiation.
• Monitor key execution milestones for both companies, specifically IBM's progress towards demonstrating quantum advantage by 2026 and IonQ's ability to scale its commercial contracts and advance a clear path to profitability to justify its valuation.
• The development of IBM's Qiskit software ecosystem is a critical long-term factor, as its success in creating a defensible moat could parallel Nvidia's CUDA platform and drive significant future value.