Artificial intelligence (AI) defined the stock market in 2023 and 2024, and companies like Nvidia (NVDA) and Palantir (PLTR) became household names. Although analysts are still bullish on AI in 2025 and beyond,

Quantum computing can optimize portfolios, analyze market trends, and enhance risk modeling. Its superior computational power improves decision-making speed, enabling financial institutions to stay ahead in dynamic markets.

In November, IBM unveiled Heron, its most powerful quantum computer to date. The company plans to have error-corrected systems ready by 2029, and it's exploring the idea of integrating quantum computers with traditional central processing units (CPUs) and graphics processing units (GPUs) to solve real-world problems.

Quantum computing stocks have emerged as one of 2024's hottest investment themes, with the Defiance Quantum ETF (NASDAQ: QTUM) soaring 49.4% year to date, nearly doubling the S&P 500's robust 24.3% gain.