Motley Fool Money: The Promise of Quantum Computing – May 17, 2025

In the May 17, 2025 episode of Motley Fool Money, hosts Ricky Mulvey and Mary Long delve into the intriguing world of quantum computing with their expert guest, Asit Sharma. This comprehensive discussion unpacks the potential of quantum technology, its current state, and the investment opportunities it presents. Here's a detailed summary capturing the key points, discussions, insights, and conclusions from the episode.

1. Introduction to Quantum Computing

Mary Long sets the stage by contrasting the prevalent buzz around artificial intelligence (AI) with the nascent yet potentially revolutionary field of quantum computing. She introduces Asit Sharma as the resident quantum industry expert, who provides a foundational understanding of what quantum computing entails.

Notable Quote:

"There's another technology in far earlier stages of development that some think has the potential to make the hype around AI look like child's play." — Mary Long [01:17]

2. Understanding the Promise of Quantum Computing

Asit Sharma breaks down the fundamental promise of quantum computing: solving intensely complex, large-scale problems that are currently beyond the reach of classical computers. He emphasizes that quantum computers are not merely faster but are capable of processing multiple possibilities simultaneously through superposition and entanglement.

Key Points:

• Complex Problem Solving: Quantum computers excel at problems with numerous variables and dependencies, such as weather prediction.
• Parallel Processing: Unlike classical computers that process information linearly, quantum computers handle multiple computations in parallel.
• Superposition: Qubits can exist in multiple states simultaneously, allowing for the exploration of various possibilities at once.

Notable Quote:

"Quantum computing is a way to look at something that could be any number of possibilities... So instead of going in through this, like linear computation, we're going through multiple paths at once, and that's why it's so powerful." — Asit Sharma [03:31]

3. Quantum Computing vs. Artificial Intelligence

The conversation shifts to how quantum computing differs from AI. While AI leverages classical computing's binary system (zeros and ones), quantum computing utilizes the principles of quantum mechanics to operate on qubits, offering a fundamentally different computational approach.

Key Points:

• AI's Limitations: AI, particularly generative models, operates within the deterministic framework of classical computing.
• Quantum Advantage: Quantum computing can potentially handle calculations and simulations that are infeasible for classical systems.

Notable Quote:

"Quantum computing isn't going to be applied to sort of simple problems to solve them faster... but think really difficult things like predicting the weather." — Asit Sharma [02:22]

4. Practical Applications of Quantum Computing

Mary Long probes into how the theoretical capabilities of quantum computing translate into practical benefits for everyday consumers. Asit Sharma provides concrete examples across various industries:

• Healthcare: Enhancing drug discovery by accurately modeling how drug molecules bind to flexible protein structures.
• Logistics: Optimizing delivery routes and energy usage for companies like Amazon, leading to faster deliveries and reduced environmental impact.
• Finance: Improving portfolio optimization by analyzing risks across numerous assets simultaneously.

Notable Quote:

"One of the most useful places we can reach is something called quantum advantage... when a quantum computer is going to be able to perform a task better, so more efficiently, more accurately than the best alternative we have." — Asit Sharma [14:24]

5. Current State of Quantum Computing

The discussion transitions to the present landscape of quantum computing, highlighting that while functional quantum computers exist, they are predominantly in the experimental phase. Challenges such as decoherence and error rates are significant hurdles that researchers and companies are striving to overcome.

Key Points:

• Experimental Phase: Quantum computers are primarily utilized by research institutions and Fortune 500 companies for experimental computations.
• Decoherence: Maintaining qubits in a stable superposition state without external interference remains a critical challenge.
• Error Correction: Significant resources are dedicated to mitigating errors inherent in quantum computations.

Notable Quote:

"Quantum computers of today, while they show a lot of promise, they're subject to certain problems of the quantum realm... they're still at an experimental state." — Asit Sharma [11:28]

6. Roadmap to Practical Quantum Computers

Asit Sharma discusses the path toward achieving quantum advantage and quantum supremacy, outlining the technical advancements needed:

• Scaling Qubits: Increasing the number of qubits while maintaining stability and reducing error rates.
• Entanglement: Enhancing the ability of qubits to interact and share information across distances.
• Error Correction: Developing robust methods to correct errors without disrupting qubit states.

Notable Quote:

"When we take one qubit and then add another and add another and then start scaling that system up and also solve for error correction, that's what needs to happen to reach these stages of what we call quantum advantage or quantum supremacy." — Asit Sharma [14:24]

7. Key Players in the Quantum Computing Industry

The episode highlights major corporations and emerging players shaping the quantum computing landscape:

• Big Players:

  • IBM: Developing the Heron quantum processor and offering cloud-based quantum services.
  • Google (Alphabet): Creating superconducting qubits and pushing for exponential error rate reductions.
  • Microsoft: Innovating with Majorana fermions for more fault-tolerant quantum systems.

• Specialized Companies:

  • IonQ & Rigetti Computing: Focused on trapped ion and modular quantum computing approaches, respectively.
  • Quantinuum (formerly Quantanum): A joint venture with Honeywell, offering full-stack quantum solutions.
  • D-Wave Quantum: Pioneering quantum annealing for optimization problems.

Notable Quote:

"Microsoft got fascinated with a type of approach which is very theoretical... their approach is more fault tolerant than the other approaches I've described." — Asit Sharma [21:02]

8. Investment Strategies in Quantum Computing

Mary Long and Asit Sharma explore investment strategies, drawing parallels with the biotech industry. They discuss the merits and risks of investing in established giants versus innovative startups within the quantum sector.

Key Points:

• Big Corporations: Offer stability and diversified involvement in quantum advancements.
• Startups: Present high-risk, high-reward opportunities as some may scale rapidly and achieve breakthroughs.
• Diversification: Balancing investments between large, steady companies and speculative smaller players can optimize potential returns.

Notable Quote:

"It's not bad to at least follow a few of the names we've mentioned, even if you're not going to invest in them... having some shares in one of the big dogs is important." — Asit Sharma [36:06]

9. The Role of Chip Makers and Designers

The conversation extends to the integral role of chip manufacturers and designers like Cadence Design Systems and Synopsys in advancing quantum computing. Their expertise in photonics and physics simulations is crucial for developing the infrastructure needed for quantum networks and processing units.

Notable Quote:

"The chip designers, the electronic design automation companies, I think they have a role to play... laying out strategic roadmaps of how to become better integrated into this ecosystem as it grows." — Asit Sharma [32:52]

10. Future Outlook and Conclusion

Concluding the episode, Asit Sharma expresses optimism about the timeline for quantum computing advancements, challenging predictions that place practical quantum computers 15 to 30 years away. He anticipates a significant breakthrough within the next 5 to 10 years, driven by ongoing research and investment.

Notable Quote:

"I personally think it'll be somewhere between five and ten years from today to reach what he's talking about." — Asit Sharma [19:13]

Mary Long wraps up by acknowledging the complexities and exciting potential of quantum computing, appreciating Asit Sharma for elucidating this multifaceted technology.

Final Thoughts

This episode of Motley Fool Money serves as an insightful guide into the burgeoning field of quantum computing, offering listeners a thorough understanding of its principles, applications, current challenges, and investment prospects. By demystifying complex concepts and highlighting industry dynamics, Ricky Mulvey, Mary Long, and Asit Sharma equip investors with the knowledge to navigate and potentially capitalize on the quantum revolution.