Quantum computing stocks surged recently after the US government announced $2 billion in grants to nine quantum computing companies in exchange for minority equity stakes. The Defiance Quantum ETF (QTUM) and Global X AI Semiconductor & Quantum ETF (CHPX) are two ETFs focused on the group, writes Neena Mishra, director of ETF Research at Zacks Investment Research.
The federal funding, which will come through the CHIPS and Science Act, underscores the importance governments around the world are placing on this nascent but potentially transformative technology. Many quantum stocks also skyrocketed recently after Nvidia Corp. (NVDA) released open-source AI models designed to support quantum computing research.
QTUM, CHPX (YTD % Change)
Source: TradingView
According to McKinsey, quantum computing could create up to $2.7 trillion in economic value globally by 2035, with major impacts expected across pharmaceuticals, chemicals, finance, and logistics.
Until last year, there were only four publicly traded, pure-play quantum companies. Since then, three more have made their public debut, and many more are reportedly planning listings in the near future, according to the Wall Street Journal.
Smaller pure-play quantum stocks are usually very volatile and trade heavily on headlines. Because it is still too early to identify the long-term winners, a diversified approach through ETFs may make more sense for most investors.
