There are moments in history when a new technology does not just improve life – it redefines it. Think of the steam engine. Electricity. The internet. Each unlocked new industries, upended the status quo, and reshaped the global economy.
Today, we may be standing at the edge of the next great leap: quantum computing.
It’s a term that has long circulated in tech and academic circles, often shrouded in complexity. But it’s no longer theoretical. Quantum computing is moving from lab curiosity to practical potential – with implications that stretch across healthcare, finance, cybersecurity, energy, and beyond.
What Is Quantum Computing – and Why Is It So Different?
To grasp what makes quantum computers unique, think of your everyday laptop. It processes information using classical bits, which can either be a 0 or a 1 – but never both.
At the core of quantum computing are unique principles unlike anything in classical computing.
- Superposition means a qubit can be both 0 and 1 at the same time – like a spinning coin that’s both heads and tails until it lands. This lets quantum computers test many solutions at once.
- Entanglement links qubits so that changing one instantly affects the other, even far apart – like rolling two magic dice in different cities and always getting the same number.
- Interference helps find the right answer. Think of each option as a wave: useful ones add up, bad ones cancel out. Quantum algorithms use this to focus on the best solution.
- Decoherence is the problem. Qubits are fragile and easily disrupted by heat, noise, or movement – like stopping the spinning coin too soon. That’s why quantum computers are kept in ultra-cold, quiet environments to stay stable and accurate.
Still Abstract? Try This Analogy
Classical computing is like reading a 1,000-page mystery novel page by page to solve the case.
Quantum computing is like reading all the pages at once – and having the answer handed to you.
This ability to evaluate countless possibilities in parallel allows quantum computers to tackle problems that classical machines simply cannot – not because they’re slow, but because the problem space is too vast.
Still Early – But the Race Is On
Quantum computing remains in its infancy. Today’s devices are limited in power, error-prone, and require extreme conditions to operate. Qubits must be cooled near absolute zero and shielded from vibration, radiation, and electromagnetic interference. Even then, decoherence remains a major constraint.
To move from prototypes to commercially viable platforms, the industry must scale from hundreds of fragile qubits to millions of error-corrected ones. That will take time – but momentum is accelerating.
Global capital is flowing in:
- UK: £500 million quantum strategy, within a broader £2.5 billion plan.
- EU: €1 billion committed via the Quantum Flagship program.
- US: National Quantum Initiative Act, backed by DARPA and the Department of Energy.
- China: $10 billion quantum research hub in Hefei.
- Private Sector: IBM, Google, Microsoft, Amazon, and Nvidia, alongside specialists like IonQ, Rigetti, and PsiQuantum, are investing heavily.
Transformative Potential Across Sectors
Pharmaceuticals
Quantum computing could simulate complex molecules and protein folding with far greater precision than classical methods, potentially cutting drug discovery timelines from over a decade to months. Early applications include designing next-gen cancer therapies and RNA-based antivirals.
Energy
Quantum simulations may accelerate battery innovation by identifying materials that improve capacity and reduce charge times — critical for EV advancement. They can also model fusion plasma behaviour, aiding progress toward commercial nuclear fusion.
Finance
Quantum algorithms enhance risk modelling and portfolio optimization, enabling faster, more accurate stress testing and real-time strategy adjustments. JPMorgan Chase and Goldman Sachs are exploring these tools to better manage volatility.
Technology
Quantum systems can streamline training for large-scale AI models, advancing areas like natural language processing and autonomous systems. Google and IBM are developing quantum-enhanced AI to push these frontiers.
Industrials
Quantum tools can optimize global logistics and supply chains, solving complex routing problems to reduce costs and boost efficiency. Volkswagen and DHL are testing quantum algorithms in traffic and delivery optimization.
Chemicals
Simulating chemical reactions at the quantum level could yield better catalysts and advanced materials. Firms like BASF are exploring these capabilities to enhance industrial processes and sustainability.
Challenges on the Road Ahead
The potential is vast – but so are the obstacles.
- Fragile hardware and high error rates remain major barriers.
- Post-quantum encryption is an emerging security challenge.
- There is a shortage of skilled quantum talent globally.
- Quantum advantage – solving a real-world problem better than classical computers – is still narrow and largely experimental.
As Nvidia CEO Jensen Huang recently put it, quantum computing is nearing an “inflection point” – not broadly, but in select high-value verticals where classical systems are reaching their limits.
The Investor’s Reality Check
Mass adoption remains years away. Investors must look beyond the hype and focus on substance – grounding their views in science, tracking credible roadmaps, and distinguishing research milestones from real-world impact.
Quantum computing may not yet be investable in the traditional sense, but it is becoming a strategic priority for governments and corporations.
So, Is It Investable?
The short answer: It depends on your horizon and risk appetite.
Quantum computing is not yet a mainstream investment theme – but it’s rapidly becoming a strategic pillar for tech giants. The total addressable market remains undefined, but the upside, if realised, could be transformative.
If quantum delivers even a single breakthrough – say, in drug discovery or materials science – the impact could be global. Think of it less like buying the next iPhone, and more like holding early stakes in electricity or the internet.
Closing Thought
Quantum computing isn’t about replacing classical computers – it’s about solving problems they fundamentally can’t. The road will be long, volatile, and highly technical.
But for those willing to do the homework, quantum may become one of the most rewarding frontiers of 21st-century innovation.
Written by
Mark Muscat, CFA
Portfolio Manager, ReAPS Asset Management Ltd
The information contained in this article represents the opinion of the contributor and is solely provided for information purposes. It is not to be interpreted as investment advice, or to be used or considered as an offer, or a solicitation to sell / buy or subscribe for any financial instruments and/ or investment services nor to constitute any advice or recommendation with respect to such financial instruments and/ or investment services. This article was issued by ReAPS Asset Management Limited, a subsidiary of APS Bank plc. ReAPS Asset Management Limited (C77747) with registered address at APS Centre, Tower Street, Birkirkara BKR 4012 is regulated by the Malta Financial Services Authority as a UCITS Management Company and to carry out Investment Services activities under the Investment Services Act 1994 and is registered as an Investment Manager under the Retirement Pensions Act.
