Quantum Computing

Sector thesis

Quantum computing is a fundamentally different way of processing information. Instead of using regular computer bits (0 or 1), quantum computers use quantum bits that can be both at once, allowing them to solve certain problems exponentially faster. Right now, the technology is still early—think where classical computers were in the 1950s—but the potential is enormous. Why now? Two things converge: first, major tech companies and governments are investing heavily because quantum could crack encryption, revolutionize drug discovery, and optimize complex systems like supply chains. Second, we're hitting the limits of traditional computing power for certain problems, so the incentive to make quantum work is real. This ties directly to the broader AI compute megatrend—quantum could eventually accelerate machine learning in ways we can't yet imagine. The sector breaks into three parts: hardware makers (companies building the actual quantum processors), software and algorithms (the tools to program quantum machines), and applications (industries like pharmaceuticals or finance using quantum to solve real problems). Each faces different timelines and risks. The biggest risk is simple: quantum computing might not work as promised, or it might take 20+ years longer than expected. You're betting on a technology that hasn't yet proven it can solve real-world problems better than classical computers. That's a long, uncertain wait. There's also the risk that only a handful of giant tech companies end up controlling quantum, leaving smaller players behind. For a retail portfolio, this is a small, speculative position at best. Watch whether companies can demonstrate "quantum advantage"—proof that their machine solves something faster than a regular computer. Track funding announcements and partnerships with major tech firms. But don't expect dividends or steady returns. This is a 5-10 year bet on a technology that might reshape computing—or might fizzle.