Quantum computers have just started to enter the mainstream awareness. Although the shift from classical to quantum computers is still ongoing and the technology experimental, the potential consequences could be far-reaching once we successfully harness the technology to societys benefit. That puts the spotlight on quantum innovation stocks leading the way forward.

Note that these quantum innovation stocks are approaching the idea and unique problems of quantum computing differently. Some are taking a high-risk, experimental approach that delves deep into the unexplored regions of physics and engineering, while others are taking the more conservative track one thats better understood.

In this article, I present three companies considered quantum innovation stocks and detail their approaches and progress to get their respective quantum systems online and commercialized. Here are the companies to consider.

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IBM (NYSE:IBM) has been a leader in quantum computing research for years. It is one of the first companies to supply customers with cloud-based quantum computing systems, and the company recently announced it was broadening its hardware offerings, too.

The company recently announced plans to install an IBM Quantum Systems Two processor at KQCs facility in Busan, Korea, by 2028. The processor is expected to be part of the IBM Flamingo family, featuring 156 qubits per module and support for up to 7 modules.

The big picture is that this reportedly attracted the attention of blue-chip clients in the Korean financial, bio-healthcare and pharmaceutical sectors. Those sectors could be heavy experimental users of quantum machines.

Quantum computers are exponentially more powerful than classical computers, and their commercialization could lead to crucial scientific developments and breakthroughs presently unreachable.

Trading at just 24.6 times earnings, IBM could be seen as undervalued in light of its progress in quantum computing.

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Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has made significant strides in quantum computing. The company claimed to have achieved quantum supremacy in 2019. Since then, it has worked tirelessly to improve the stability and power of its quantum systems.

The company claims to be leading the quantum computing arms race, which it is apparently demonstrating by reducing the error rates of its quantum system. Last year, Googles 3rd generation Sycamore processor was reported to typically experience error rates between 1 in 10,000 to 1 in 100.

The above progress marks the second step in Googles roadmap to building an error-corrected quantum computer, and its progress seems to be accelerating.

I think quantum as an additional growth tailwind makes Alphabet a strong buy. In the short term, analysts expect its EPS to surge 16.36% in FY2024, so this may give investors something more immediate while they wait for the quantum computing market to hit its full stride.

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Microsoft (NASDAQ:MSFT) is another tech behemoth with substantial interest in quantum technologies.

MSFT, in my opinion, is one of the better stocks positioned to take advantage of this computing development. Thats because its one of the few companies to release its development toolkit Q#.

That is a highly underappreciated feature and seems to be unique to Microsoft. Q# is the programming language developers will use to develop sophisticated quantum algorithms to power applications. MSFT is already courting developers to learn and utilize this language, which interfaces with Microsofts cloud service, Azure.

Hypothetically, suppose Q# gains widespread acceptance amongst developers. That would be a significant competitive advantage and moat for MSFT to lean on due to the time investment of having to switch to a competing language and the first-mover advantage it presents for MSFT.

Q# could very well become the .NET for quantum applications, a language that needs highly specialized developers to work in the field.

Microsoft has experience building these types of ecosystems before, and I believe its capable of fostering a similar one with Q#. Its a possibility that investors should keep in mind.

On the date of publication, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

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3 Stocks at the Forefront of Quantum Innovation - InvestorPlace