INVESTMENT THESIS 2026

The Quantum Computing Inflection

Below-threshold error correction achieved. $3.77B in equity funding. Four investable layers from hardware to security — navigating extreme valuations toward a $2T value creation opportunity.

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2030 Market Size
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CAGR 2025-2030
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2025 Equity Funding
$0
2035 Value Creation
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Govt Funding (Cumul.)
0
Public Companies
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From "If" to "When"

Quantum computing stands at ~$1.6-3.5B today. Five competing hardware modalities, no winner yet. The race to fault-tolerant computing converges on 2029 — with healthy skepticism warranted.

Market Size Projections ($B)

Funding Landscape (2025)

Q1 2025 Equity Funding
+128% year-over-year
$1.25B
Q1-Q3 2025 Equity Total
Accelerating pace
$3.77B
Government Funding (Cumul.)
Through April 2025
$10B+
U.S. Federal PQC Budget
2025-2035 migration
$7.1B
EU Quantum Budget
July 2025 commitment
EUR 1B+

Value Creation by End-User Sector (McKinsey 2035 Estimates)

Sector
Value Creation
Market Share
CAGR
Confidence

Central Tension

Pure-play quantum stocks trade at 100-2,700x trailing revenue, reflecting speculative premium on technology that remains pre-revenue at meaningful scale. Fault-tolerant quantum computing is 3-7 years away. The most attractive near-term opportunity is post-quantum cryptography migration — driven by regulatory deadlines, not hardware timelines.

Four Investable Layers

Hardware, Software, Networking, and Applications — each with distinct risk profiles, timelines, and entry points.

Hardware Modality Comparison

Fault-Tolerance Roadmap (2029)

IBM Starling
200 logical qubits, qLDPC codes, modular architecture
2029
Google (Willow Successor)
Surface codes, below-threshold demonstrated
~2029
Quantinuum Apollo
Trapped-ion, hybrid code protocol
2029
IonQ
1,600-8,000 logical qubits, accelerated roadmap
2028-29
Xanadu
Photonic, fault-tolerant by design
2029

Market by Segment ($B)

Software & Platforms

Qiskit (IBM)
Market-leading SDK, largest dev community
Leader
Amazon Braket (AWS)
Multi-vendor marketplace + proprietary chips
Scaling
Classiq
Quantum EDA, $200M+ funding, tripled rev
$200M+
NVIDIA cuQuantum/CUDA-Q
4,000x simulation speedups, middleware layer
Platform
Riverlane (QEC)
Pure-play error correction, $120M+ raised
MegaQuOp

Networking & Security

SandboxAQ
AI-quantum security, Eric Schmidt chaired
$5.75B
PQShield
PQC hardware IP for semiconductors
$65.1M
Toshiba QKD
600+ km distance record, hybrid QKD+PQC
600 km
CNSA 2.0 Deadline
All new NSS acquisitions compliant
Jan 2027
PQC Already Shipping
Chrome, Firefox, Safari, iOS, Android, Windows
Live

Enterprise Quantum Programs

HSBC Bond Trading
+34%
Improvement via IBM Quantum
Goldman Sachs Risk
25x
Risk analysis speedup
D-Wave Customers
100+
Production quantum annealing
IBM Quantum Revenue
$1B+
Cumulative to date
Bitcoin Exposed
$718B
Quantum-vulnerable P2PK addresses
IBM Error Mitigation
100x
Cost reduction achieved

The Investable Universe

From diversified quantum optionality to pure-play bets. Filter by conviction tier to explore the full landscape.

All
Tier 1
Tier 2
Tier 3
Private / IPO
Avoid

Upcoming IPOs

Company Expected Valuation Timeline Significance

Catalyst Calendar

Key events from near-term earnings to long-term fault-tolerance milestones that could move the sector.

What Could Go Wrong

Ten risks from extreme valuations to quantum winter — the sector is priced for perfection in a field where perfection is decades away.

Recommended Watchlist

Build positions in diversified quantum optionality (IBM, HON, NVDA). Watch PQC migration for near-term revenue. Monitor 2026-2027 error correction milestones — they determine whether the 2029 fault-tolerance timeline holds or slips.

Research compiled February 2026. Not investment advice. See sources below.

Sources & References