Quantum computing stocks have exploded in value as investors race to participate.

IonQ and D-Wave have both amassed market capitalizations of more than $10 billion.

10 stocks we like better than IonQ ›

Quantum computing is having a moment. Once the stuff of science fiction, functional quantum computing could soon be a reality. This belief has led retail investors to pile into pure-play quantum stocks, with many having suddenly found themselves with multibillion-dollar market capitalizations.

Let’s consider two of the most prominent: **IonQ **(NYSE: IONQ) and D-Wave Quantum (NYSE: QBTS). Which is the better pick for those looking to invest in this potentially revolutionary technology?

Classical computers, like your iPhone, process information using tiny circuits that are either on or off at any given moment. These states are represented by bits: 1’s (on) and 0’s (off). The chip at the core of an iPhone contains billions of these switches, called transistors, and each one can only be in one state at a time – either 1 or 0. There are only two options.

Not so in a quantum computer. Quantum bits, or qubits, can exist in multiple states simultaneously – a phenomenon known as superposition – allowing quantum computers to model incredibly complex systems that would take even the most powerful supercomputers years to solve.

If perfected, quantum computers could revolutionize cryptography, drug discovery, and materials science, solving problems that classical computers currently cannot, and may never be able to. The opportunity is enormous, but it’s important to remember that practical, large-scale quantum computing is still very much in development.

Qubits are finicky and extremely unstable, causing quantum computers to suffer from high error rates. Solving this is one of the core issues facing the industry. IonQ is attempting to tackle this head-on; its “trapped ion” technology, while complicated, expensive, and difficult to scale, creates some of the most stable qubits on the market.

Image source: Getty Images.

D-Wave, on the other hand, is focused on scaling. Its “annealing” approach leads to higher qubit count, but at the cost of stability. The company has also chosen to build “hybrid” systems that combine quantum and classical.

It’s impossible to know what approach – if any – will ultimately lead to a viable quantum computer. At present, it seems that D-Wave’s annealing technology may lead to higher qubit systems today. However, it may be more limited in its upside over the long run. IonQ’s trapped-ion technology may take longer to perfect and more resources to implement, but if developed successfully, it could create a much more powerful quantum computer, one that would live up to the hype.