Quantum Computing Headlines Are Getting Exciting

Technology stocks, and nearly every other segment with ties to the artificial intelligence (AI) trade, are in the midst of a two-month swoon as market participants look for greener, non-tech pastures. Not surprisingly, quantum computing equities are getting the bad end of that deal.On the other side of the coin, that near-term weakness could give way to long-term opportunity with assets such as the WisdomTree Artificial Intelligence and Innovation Fund (WQTM). The recent pullback by quantum computing equities belies some positive news flow affecting the space. Earlier this month, Duke University researchers with ties to WQTM holding IonQ (IONQ) showed progress on the first three-node quantum network harnessing photonic-connected atomic qubits. Just two days later, Quantinuum (QNT), WQTM’s largest holding, released benchmark-shattering research on its 98-qubit trapped-ion quantum processor. So, while tech stocks are out of favor, some of WQTM’s marquee member firms are showing tangible progress. That’s exactly what the quantum computing industry needs to deliver after several years of delivering no more than “hopium.”Long-Term Appeal With WQTMFor risk-tolerant investors with long-term perspectives, the $279.2 million WQTM holds appeal from a tactical perspective. Some arguably intense levels of science and technology support that thesis. In an effort to break through the jargon and complexities, investors may want to consider the poignancy of Quantinuum’s Helios software. “Quantinuum built a real-time classical control stack called the Helios runtime that maps user-defined ‘virtual qubits’ to physical ions while a quantum program is actively executing, dynamically routing ions, sorting batches, and supporting complex control flow including mid-circuit measurements and conditional logic,” observed Christopher Gannatti, WisdomTree’s global head of research. “That is a meaningfully different kind of achievement than demonstrating a beautiful two-qubit gate in isolation. It is engineering infrastructure for a programmable machine.” IonQ, WQTM’s fourth-largest holding, is making strides using trapped ions to close what’s known as the detection loophole. Put simply, that loophole describes a scenario in which detectors don’t capture all of the particles in an entangled state. IonQ’s “experiment achieved a bounded GHZ state fidelity of 0.841 to 0.881, which is genuinely impressive for a three-node distributed system, better than prior demonstrations in diamond color centers or atomic ensembles. But the entanglement generation rate is approximately 0.095 successful events per second. The population data in the paper came from 687 successes out of more than 4.1 billion attempts,” added Gannatti. Yes, this is wonky stuff. But for investors, it’s worth keeping an eye on quantum computing progress. It’s currently going underappreciated, and that could open the door to opportunity with WQTM. The ETF debuted last October and tracks the WisdomTree Classiq Quantum Computing Index. For more news, information, and analysis, visit the Modern Alpha Content Hub.DisclosuresThis article was prepared as part of WisdomTree’s general paid sponsorship of VettaFi | ETF Trends. This specific content within and any opinions expressed therein belong solely to VettaFi and do not reflect the opinion or analysis of WisdomTree, its employees, or its affiliates. Content published on VettaFi | ETF Trends is provided for educational purposes only and should not be considered investment or tax advice. For investment or tax advice, please consult a financial professional. WisdomTree is an independent company, unaffiliated with VettaFi | ETF Trends. WisdomTree has not been involved with the preparation of the content supplied by VettaFi | ETF Trends. It does not guarantee, or assume any responsibility for its content.