Looking back at the US stock market trends, since November of this year,$Tesla (TSLA.US)$、$Destiny Tech100 (DXYZ.US)$stocks benefiting from Donald Trump winning the US presidential election have indeed been on a remarkable rise,$Broadcom (AVGO.US)$AI ASIC chip stocks have benefited from the explosive demand for customized AI chips, while another theme that has gained market attention and growth since November is "Quantum Computing." As the commercialization of "quantum computing heuristic applications" becomes more mature, breakthroughs in quantum entanglement gradually emerge, and the integration with AI supercomputing systems accelerates, the "ChatGPT moment" for quantum computing seems to be getting closer. With funds pouring into Wall Street, the upward trend in stocks related to the quantum computing theme may just be getting started.

Since November, the field of quantum computing has welcomed many positive catalysts at both the industry development and macroeconomic levels, pushing US stocks associated with quantum computing into a "bull market-like surge mode". Especially since December, when Google launched a super heavyweight quantum chip named "Willow," the entire quantum computing industry exploded, and this chip may push the commercial trajectory of quantum computing into an accelerated curve. According to a statement from Google on December 9, the Willow quantum chip demonstrated remarkable performance in benchmark tests, completing a "standard benchmark computation" in less than 5 minutes, while traditional supercomputers would take 10^25 years to complete the same task.

Under the heavy catalyst of Willow, $IonQ Inc (IONQ.US)$ it has risen over 24% since December, $Quantum Computing (QUBT.US)$the increase has reached as high as 160% since December, $D-Wave Quantum (QBTS.US)$ while the increase during the same period has approached 230%.$Rigetti Computing (RGTI.US)$Since December, the increase has reached an astonishing 460%. The Market Cap of the tech giant Google has reached $2.4 trillion, with its stock price rising by over 15% since December, driven by the wave of Quantum Computing.

Even an ETF focusing on Quantum Computing Concepts, which has long been overlooked by the market - $Defiance Quantum Etf (QTUM.US)$ , has recently been repeatedly mentioned by several Wall Street Analysts, attracting a large Inflow of funds and is expected to create the largest net Cash inflow since its launch in 2018. This ETF has risen by as much as 20% since December, and by 55% this year, marking the best-performing year since its listing.

Bloomberg Intelligence stated in a recent report on quantum computing: "Quantum computing is experiencing a moment almost identical to that of AI last year. Many stocks related to quantum computing are not widely held by ETFs, so Defiance Quantum is actually the only pure quantum computing ETF investment on the market. I wouldn't be surprised to see more quantum computing-related funds launched."

Google and these Quantum Computing concept stocks have seen an incredibly strong price surge and inflow of funds since December, which is far from just retail speculation; Wall Street has also joined in this round of Quantum Computing super rally. These funds have flocked in, and within less than a month, they pushed the total market cap of Rigetti Computing, which was once on the brink of being delisted, to nearly 5 billion USD, an unprecedented achievement. In the eyes of these Wall Street institutions, the investment theme of "Quantum Computing" has now joined the ranks of popular investment themes like Semiconductors, Software SaaS, Cloud Computing, Electrical Utilities, and weight-loss drugs.

In addition to Google's active layout in Quantum Computing, another American tech giant$Amazon (AMZN.US)$Also, expanding its layout, Amazon AWS recently launched a program called "Quantum Embark" aimed at exploring a hybrid architecture that integrates quantum computing chips with traditional chips, helping customers prepare for the quantum computing era.

The future market size of Quantum Computing is incredibly vast. According to a recent forecast report from the well-known research organization MarketsandMarkets, the global Quantum Computing market size in 2024 is only expected to be 1.3 billion USD, but it is projected to reach as high as 5.3 billion USD by 2029, with a compound annual growth rate of up to 33% during the forecast period. MarketsandMarkets states that the entire Quantum Computing market, including the core hardware infrastructure driving Quantum technology, Quantum Computing deployment (local and cloud), and AI applications driven by Quantum Computing acceleration (such as AI training/inference computing power systems that fuse Quantum Computing), is expected to accelerate expansion starting from 2024. This includes "heuristic Quantum Computing applications" deeply embedded in certain R&D-focused industries, greatly enhancing some companies' R&D efficiency, and significant breakthroughs in Quantum entanglement, leading to controllable and increasingly precise practical "Quantum Computing machines" moving toward small-scale commercialization.

Additionally, Donald Trump is set to return to the White House for his second term in January, and he has promised to reduce regulation on large companies and cut taxes, increase oil production, and implement strict immigration policies. These indicate that economic growth and inflation are likely to strengthen, which is viewed as a bullish factor for the stock market. Industries such as Banks, Technology, Defense, and fossil fuels may significantly benefit, especially in Technology, as the U.S. government under Trump's leadership is likely to focus on accelerating development in cutting-edge technological innovation fields like AI, Quantum Computing, nuclear fusion, and Aerospace.

On Wall Street, many financial giants are starting to cover the listed companies in the Quantum Computing field. In a recent investor report, Morgan Stanley stated, "We cannot pinpoint a clear catalyst for the appreciation of Quantum Computing stocks during this period, but we do see continuous positive signs that investments in Quantum will continue to grow rapidly." "Recently, U.S. lawmakers proposed a bill authorizing the federal government to provide 2.7 billion USD in funding for Quantum technology. Clearly, the market is enthusiastic about the potential of Quantum technology to access a 200 billion USD AI TAM by 2026."

"Heuristic Quantum Computing applications" are accelerating their commercialization progress, and "Quantum Entanglement" is the next key milestone.

Quantum computing systems exploit the properties of quantum mechanics, such as quantum superposition and quantum entanglement, to provide a new paradigm of computation that theoretically could vastly exceed the computational capabilities of traditional computers in certain specific areas.

Google's Willow quantum chip has completed standard benchmark calculation tasks, relying on the strong computing power of Quantum Computing, such as the parallelism of qubits and quantum error correction, and quantum interference effects, allowing quantum computers to complete benchmark tasks in a very short time, while traditional supercomputers take an extremely long time to simulate these quantum behaviors.

However, it should be noted that currently, no company, including Google, has achieved any meaningful precise control over quantum states that can be commercially realized on a large scale, and there is still a significant gap to the 'final form' of quantum acceleration. This is also why Google CEO Sundar Pichai emphasized in a post that the Willow quantum chip represents 'an important step toward creating practical quantum computers,' which also indicates that Google is still far from achieving controllable and commercial 'Quantum Computing.'

Currently, the quantum computing platforms offered by these companies mainly focus on entry-level heuristic quantum computing applications, with a very narrow application scope. Most of them can only address acceleration issues closely related to specific industries and cutting-edge research and development, playing a supportive role, such as $CSI SWS Health Care index (000808.SH)$large research and development projects in research and engineering as well as physics laboratories. Currently, human technology cannot achieve precise and stable control over quantum states through a general computing system, especially facing significant technological bottlenecks in achieving precise and controllable 'quantum entanglement.'

The commercialization process of Quantum Computing needs to address a series of technical challenges, including quantum error correction and the stability of qubits, and it requires controlled entanglement depth and scale, as well as the precise realization of the most crucial special quantum state for commercialization—quantum entanglement. Quantum entanglement refers to the interdependence of the quantum states of two or more qubits, where their states cannot be described independently; for example, if two qubits are entangled, regardless of the distance between them, measuring the result of one qubit will immediately affect the state of the other. Quantum entanglement is one of the key characteristics of Quantum Computing, allowing for strong correlations between qubits, which is critical for parallel computing and solving certain problems. However, current technology has not yet been able to achieve large-scale, long-term stable quantum entanglement.

However, even entry-level 'heuristic quantum computing applications'—such as ion traps, quantum annealing, and quantum simulation—already have significant implications for acceleration in certain research and development projects. However, quantum states still cannot be precisely controlled; in practical operations, the states of qubits are easily affected by external environmental interference, leading to quantum decoherence and quantum errors, which require quantum computing companies to repeatedly experiment with errors and are limited to specific acceleration calculations, making it difficult to precisely control costs.

Recently, companies like Rigetti Computing, IonQ, D-Wave Quantum, and Quantum Computing Inc., which saw significant stock price increases in the US, are important players in Quantum Computing, each focusing on different directions of acceleration based on Quantum Computing. Although these companies have made some progress, they have not yet achieved true large-scale commercial quantum computing, and their products and services mainly concentrate on specific cutting-edge research and development areas, essentially remaining in the heuristic quantum computing application stage with a relatively narrow range of applications.

With the launch of Google's Willow quantum chip, the development of Quantum Computing can be said to be pressing the 'accelerate button,' indicating that future catalysts for these Quantum Computing concept stocks may become increasingly frequent, whether for heuristic applications or research on improving precision in quantum entanglement. Positive catalysts may intensively emerge in the future, further driving the prices of these quantum computing stocks to continue rising.

For example, Quantum Computing will leverage its entropy quantum optimizer, Dirac-3, to support the advanced imaging and data processing needs of NASA's Goddard Space Flight Center, highlighting the deep integration of heuristic applications with frontiers specific to the aerospace field, using the acceleration effects driven by quantum computing to comprehensively upgrade efficiency transformations in certain areas. Specifically, this project aims to utilize Dirac-3 to solve phase unfolding problems, and the company will assist NASA in optimally reconstructing images and extracting information from radar-generated interference data. During this period, the quantum computing company will aid NASA in conducting interference maps at full scale, thereby enhancing data quality and accuracy.

IonQ's latest demonstration of Remote Ion-Ion Entanglement represents a significant breakthrough in the field of quantum computing, involving the establishment of a crucial 'quantum entanglement relationship' between two ions that are physically separated through quantum communication technology. This entanglement relationship is one of the key steps in achieving quantum entanglement, especially in building quantum communication networks and interconnecting quantum computing systems.

In a recent study, a research team from the Swiss Federal Institute of Technology in Lausanne successfully placed six mechanical oscillators collectively in a quantum state. This research marks an important step forward for quantum technology, laying the foundation for constructing large-scale quantum systems. The research team emphasized that quantum motion is generally limited to single objects, but in the latest experiment, it spanned across the entire oscillator system. This latest research is expected to promote quantum sensing technology, potentially driving broader application scenarios and significantly enhancing the depth and control of entanglement and efficiency in quantum computing level applications.

Quantum Computing - The core driving force behind the development of AI.

The future of quantum computing is likely to be the core engine for accelerating the development of AI computing power. Quantum computing can not only accelerate the training process of large AI models and solve some problems in AI inference systems that are difficult for traditional computing to address, but it may also promote the development of more efficient large AI models by integrating new technologies like quantum neural networks in the future, accelerating the penetration of AI humanoid robots, the most disruptive 'cyberpunk products' of the AI era, across the globe.

Based on the principles of quantum mechanics, quantum computing is fundamentally different from traditional classical computing. Quantum computers use quantum bits instead of binary bits found in traditional computers, and quantum bits can utilize fundamental quantum properties such as quantum superposition, quantum entanglement, and quantum interference to perform calculations. This endows quantum computing with immense parallel computing capability and exponential acceleration power, providing significant support for the development of training/inference systems in AI and bringing it to market, effectively like a 'cheat code'. The future costs related to AI applications are expected to drop significantly, and it is possible to achieve global coverage of large AI models, as well as the so-called 'embodied AI' - mainly including AI humanoid robots, bringing forth an 'industrial revolution-level' surge in human productivity.

For instance, traditional large AI models require extremely high computing power when processing billions to trillions of parameters, which makes the training and deployment of AI models very costly. Large models typically need to explore vast parameter spaces, and quantum computing can leverage quantum superposition to quickly find useful solutions in these high-dimensional spaces. 'Quantum Neural Networks' represent a mixed architecture that combines the acceleration model of quantum computing with neural networks, able to utilize the properties of superposition and quantum entanglement of quantum bits, making the training and inference paradigms of neural networks more efficient and precise. Although this technology is currently in the research stage, it exemplifies the best potential for the comprehensive integration of quantum computing and large AI models.

In driving the process of human development, 'AI + Quantum' holds more revolutionary significance than merely AI or solely quantum computing; quantum computing can efficiently simulate complex quantum systems that traditional computers cannot. In combination with artificial intelligence, it holds immense significance for research in fields such as drug design, materials science, and molecular simulation, enabling large models to leverage the 'quantum computing acceleration paradigm' to process complex models more rapidly, thereby driving innovation across industries like pharmaceuticals, biotechnology, weather forecasting, and Energy at an exponential pace.

Although "AI + Quantum" is currently at the forefront of research, the deep integration of these two areas may ultimately be the destination for the large-scale practical commercial application of the new accelerated computing model of Quantum Computing. At present, the biggest challenge for "AI + Quantum" lies in the hardware aspect, specifically how to design an architecture that can perfectly integrate binary hardware computing infrastructure with quantum computing infrastructure based on quantum bits.

Any progress regarding "AI + Quantum" may become the most significant catalyst for Global Concept related Stocks. Therefore, the quantum computing advancements of IBM and Google, the two technology giants at the forefront of quantum computing research, are crucial. Around this time last year, IBM showcased a new quantum computing chip and quantum computing machine, stating that they hoped these new chips and machines could become the cornerstone of a larger application system in 10 years. The IBM quantum computing machine has the potential to achieve precise operations of quantum entanglement and enhance the depth of entanglement, and it may make progress in integrating quantum bits with binary computing infrastructure.

Recent quantum processors released by IBM, such as the Eagle chip and Condor chip, are part of its quantum computing development plan, aimed at advancing the scale and computing power of quantum computers through the expansion of quantum bits and enhancement of quantum entanglement depth. Furthermore, IBM demonstrated a new approach in the aforementioned quantum computing machine: connecting chips internally to the machine, and then connecting some quantum machines together to form a new modular system, which allows for scalability independent of physical conditions. When combined with new error correction codes, it is possible to produce a new quantum computer that draws global attention by 2033. IBM hopes that this chip and machine can become the cornerstone of a more extensive application system in 10 years. IBM's blog stated: "We have entered a new era of quantum computing, where the theme of the past few decades was the emergence and establishment of this new technology, and now we are laying the foundation to make quantum computing a reality and achieve commercialization."

Is Quantum Computing expected to become a hot topic? Make good use of the investment themes feature, open Futubull > Market > US Stocks > Investment Themes >Quantum Computing concept,Capture investment opportunities~

Editor/new