Bank of America in a report on quantum computing forecast that the technology could reach a key milestone by 2030-2033. But, the Wall Street firm did not initiate coverage on any quantum computing stocks.
"Whoever wins the quantum race will gain an unprecedented geopolitical, technological and economic advantage," said BofA analyst Haim Israel in the report, which highlighted government spending by the U.S., China and Europe. He noted that "Government quantum funding announcements have totaled over $42 billion, of which 35% has been made by China."
Quantum computing could reach a key milestone within 5 to 8 years, the BofA report said.
"Whilst quantum computers may be able to solve certain problems better than a classical computer, the challenge is demonstrating quantum advantage — that a quantum computer can solve a useful real-world problem faster than a classical computer," said Israel. "We have not yet been able to achieve this because quantum computers are too 'noisy' where the qubit quality is not high enough yet to see quantum advantage."
He added: "While there are examples of quantum supremacy, we are yet to see quantum advantage because quantum computers are currently too error prone. The challenge is to increase the qubit number and quality. There are various ways this could be achieved. ... Quantum advantage estimates range from 2030 to 2033."
Quantum Computing Stocks Volatile
Quantum computing stocks have been volatile in 2025. D-Wave Quantum has posted the biggest gain this year, followed by Quantum Computing in the wake of an early June rally.
D-Wave stock has advanced 90% this year. Shares in Quantum Computing have gained over 7% this year. Meanwhile, IonQ has edged up 1% this year while Rigetti Computing has retreated 5%.
Quantum computing works on a subatomic level and uses exotic technologies, like supercold superconductor chips. Further, Quantum computing aims to solve problems too complex for today's classical computers.
The BofA report also touted synergy with artificial intelligence applications.
Artificial Intelligence Synergy
"One of the most exciting applications is the marriage of the two most powerful technologies: AI and quantum computers," said the report. "The convergence of AI and quantum technologies can enable fundamental improvements in the 'physical' world as well as the digital one. While quantum computers will provide endless calculations when available, the increased capability of AI technologies can unlock several transformational use cases in the meantime."
"Large language models complemented with simulation, knowledge graphs, computer vision and predictive analytics are 'the new AI toolbox' that companies can deploy. Iterative research tasks that would have taken years can now be achieved in weeks. Life sciences, chemicals, materials, and finance/logistics are all in scope to benefit."
JPMorgan also recently took a deep dive on the emerging technology but like BofA did not initiate coverage on quantum computing stocks.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
