Is the practical application of Quantum Computer imminent? IBM and major high-tech companies have begun research and development | Jun Ishihara's 5 US stock trends | Moneyクリ MoneyX's investment information and media useful for money.

New Achievements from the Combination of Quantum Computers and Supercomputers, NVIDIA [NVDA] CEO Also Mentions Practical Applications

According to the June 28 article in the Nikkei, titled "RIKEN Advances Towards Quantum Supremacy by Executing Chemical Calculations with Quantum and Supercomputer Collaboration," the RIKEN research institute combined IBM's superconducting quantum computer with its supercomputer "Fugaku" to clarify the properties of compounds that were difficult to compute using the supercomputer alone. The research group's results were published in May in the American scientific journal Science Advances.

In the future, we will further develop algorithms suitable for operating a combination of quantum and supercomputers and advance verifications, etc. While Quantum Computers are expected to perform high-performance calculations, their current performance is limited. However, new results are beginning to emerge through collaboration with supercomputers. Although it was thought that practical applications were still far off, it seems that a countdown has begun.

[Figure 1] IBM's Sales and Final Profit and Loss Source: Created by the author based on financial statements NVIDIA's CEO Jensen Huang spoke at the tech industry conference "VivaTech" held in Paris on June 11, pointing out that quantum computing is reaching a turning point. He stated that after decades of development, quantum computing is on the verge of takeoff as a "more robust, high-performance, and resilient" system.

Mr. Fan indicated during the keynote speech at the world's largest technology trade show "CES" held in Las Vegas, USA, in January 2025, that it would take about another 20 years for the practical application of Quantum Computer. Mr. Fan's remarks suggest that the predictions, which had estimated practical application to be several decades away, have changed in about six months.

According to a Bloomberg article dated June 12 titled "The Dawn of Quantum: NVIDIA CEO Huang Declares a 'Turning Point' Approaching," it was stated that "similarly to Moore's Law, it is quite predictable that the number of logical quantum bits will increase tenfold every five years and a hundredfold in ten years."

Can we overcome the challenges of "error correction"? Experimental introduction has also begun in new drug development and other areas.

The concept of the Quantum Computer was first proposed in the 1980s. Quantum Computers are capable of parallel computation, which allows them to process information and solve problems much faster than traditional sequential processing computers. Typically, commonly used computers record data in semiconductor bits as "1" or "0", whereas Quantum Computers create a superposition state called "quantum bits" and can hold both "1" and "0" simultaneously, allowing them to record four values: "00", "01", "10", and "11".

However, there are hurdles that must be overcome for practical application. Quantum states are extremely unstable, and many errors occur during computation. As the number of errors increases, not only do the calculation results become inaccurate, but a large portion of the computational power is also spent on error correction. Finding a solution to this error correction problem has been the biggest challenge towards practical application. This is where the initiative by RIKEN, mentioned at the beginning, aims to suppress errors using supercomputers. If research progresses with this combination, it will yield significant benefits for Japan, which has been working on supercomputers for many years.

In terms of applications, experimental implementations have already begun. For example, companies in pharmaceuticals, chemicals, and energy sectors are already adopting Quantum Computers for drug discovery for the development of new drugs and for discovering better molecular structures. Additionally, they are believed to be able to address the efficiency of financial markets and traffic issues, and furthermore, they are expected to contribute to the establishment of cryptographic technologies, which are essential for cybersecurity.

2025 marks 100 years since the birth of quantum mechanics. The United Nations has officially declared it as the "International Year of Quantum Science and Technology." In Japan, Prime Minister Ishiba has positioned 2025 as the "First Year of Quantum Industrialization" and expressed support for startups. Additionally, he announced the signing of new cooperation agreements with five countries to promote international collaborative research in quantum studies. At the G7 Summit held in Canada in May, the promotion of quantum technology was also adopted in the joint statement. It is likely to become a recurring topic in the stock market in the future.

Alphabet [GOOGL], Alibaba Group [BABA] and other major tech companies are also advancing their development.

The Boston Consulting Group (BCG), a management consulting firm, published a report titled "The Long-Term Forecast for Quantum Computing Still Looks Bright" in July 2024. It maintained the 2021 prediction that quantum computing will generate an economic value of $450 billion to $850 billion worldwide by 2040.

Currently, investment from the public sector is leading the way. As it has done in the past with technologies such as semiconductors, the internet, and GPS, the public sector is providing significant support for quantum computers through grants. According to BCG's estimates, public procurement of quantum computers already supports more than half of the market, and given the announcement status of existing plans and the geopolitical importance of quantum technology, this demand is expected to persist for the next 3 to 5 years.

[Figure 2] Outlook for the global Quantum Computer market until 2027 Source: Created by the author based on data from the Boston Consulting Group. The aforementioned IBM announced a new plan in early May to build a practical quantum computer with quantum error resistance by 2029. It is said to possess 20,000 times the computational power compared to current quantum computers, with applications expected in various fields such as material exploration, drug discovery, and combinatorial optimization problems. It aims to accelerate the social implementation of quantum computers ahead of its competitors.

IBM is not the only company advancing the development of quantum computing. Major tech companies are also embarking on research and development. In addition to Alphabet [GOOGL], Alibaba Group [BABA], Microsoft [MSFT], and Honeywell International [HON], there are also several emerging public companies, such as Rigetti Computing, Inc. [RGTI], a developer of processors for quantum computers, and Quantum Computing, Inc. [QUBT], specializing in quantum engineering technology.

Only companies with "Quantum Readiness" can enjoy "Quantum Advantage".

In a June 13 article from Business Insider titled "The Quantum Computing Revolution is Approaching... CEOs Who Haven't Started Preparing Will Be 'Too Late'", it is reported that amid the increasing momentum of quantum technology in both the public and private sectors, Nicolo de Masi, CEO of IonQ, commented that "companies that quickly find the best use cases for the industry and rapidly develop and implement hybrid algorithms will gain a significant advantage."

Companies that have made preparations will be able to use and leverage the first major Quantum Computer as soon as it begins operating, and there is a risk that "companies that do not start will become outdated." It was stated that "in many industries in the future, companies led by CEOs who do not understand the quantum revolution are likely to fall significantly behind, and the possibility of those CEOs being dismissed is high."

Quantum Computers are currently in the final stage of what IBM refers to as "Quantum Readiness." For businesses, it is crucial during this period to accumulate intellectual property, build talent and know-how, and prepare themselves physically for the upcoming era. In a few years, when practical Quantum Computers are developed, only those companies and nations that have made preparations will be able to enjoy the "Quantum Advantage."

Five Notable Stocks by Jun Ishihara

IBM Source: TradeStation

Alphabet [GOOGL] Source: Trade Station

Microsoft [MSFT] Source: Trade Station

Rigidty Computing Inc [RGTI] Source: TradeStation

Quantum Computing Inc [QUBT] Source: TradeStation