Quantum computing funds are crazily raising money, and the market is once again gambling on the "AI Moment".
25/12/2024
GMT Eight
In the past six years of development, the market performance of the Defiance Quantum ETF (QTUM.US) has been mediocre and has failed to attract investor attention. However, with Alphabet Inc. Class C's parent company Alphabet (GOOGL.US) announcing a major breakthrough in the field of quantum computing earlier this month, market sentiment quickly changed. Now, the QTUM fund is attracting funds at an astonishing rate.
Data compiled by Bloomberg shows that QTUM, which aims to track stocks related to quantum computing, has received approximately $250 million in inflows since December, poised to achieve the highest monthly cash inflow since its launch in 2018. During this period, QTUM has risen by 17%. Prior to this year, QTUM had only seen a net inflow of $164 million since its inception.
Earlier this month, Alphabet announced a major achievement in quantum computing with its Willow quantum chip. The company stated that its quantum computer can solve problems in just 5 minutes that would take a supercomputer approximately "10 to the power of 25" years to solve. Following the announcement, Alphabet's stock price rose, and other stocks related to quantum computing have also continued to rise in recent days.
Bloomberg Intelligence analyst Athanasios Psarofagis said, "Quantum computing is experiencing a moment similar to artificial intelligence last year. Many quantum computing stocks are not widely held by ETFs, so QTUM is actually the only pure play in the market. I wouldn't be surprised to see more quantum computing-related funds listed."
Quantum computing involves using quantum physics to create more powerful computers. Experts in the field hope that these computers can make breakthroughs in areas ranging from drug development to financial modeling.
The index tracked by QTUM consists of D-Wave Quantum (QBTS.US), Rigetti Computing (RGTI.US), IonQ Inc (IONQ.US), as well as Alphabet and NVIDIA Corporation (NVDA.US). D-Wave, a Canadian company, was the first to sell quantum computers in 2011 and has seen its stock price rise by over 800% this year, while Rigetti's stock price has risen by over 1000%.