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The quantum computing industry is growing fast. The global market is expected to jump from $1.1 billion in 2024 to a staggering $16.2 billion by 2034, growing at an impressive annual rate of 30.9%.
This technology has grabbed a lot of attention, especially as tech powerhouses like Amazon (AMZN), Microsoft (MSFT), and International Business Machines (IBM) take the lead in what’s being called the quantum computing "gold rush."
The urgency around quantum computing became even clearer in late 2024 when Google’s breakthrough with its Willow quantum chip made headlines. The chip solved incredibly complex math problems in just five minutes — problems that would take classical supercomputers about 10 septillion years to crack. This milestone has reignited excitement in quantum computing, even among earlier skeptics.
Governments are also pouring money into this space, recognizing its strategic importance for the future. The U.S. recently proposed $2.7 billion for quantum research, while China has committed over $15 billion to similar initiatives. This global competition shows just how critical quantum computing is becoming for technological dominance.
With quantum computing quickly moving from theory to real-world applications, let’s examine how these three tech giants are gearing up to capitalize on this technological gold rush.
Amazon (AMZN)
Amazon (AMZN) is a global powerhouse in e-commerce, cloud computing, and AI. Its business is built around three main areas: online retail, Amazon Web Services (AWS), and advertising.
AWS, in particular, has made Amazon a key player in the quantum computing race of 2025. It offers businesses tools to experiment with quantum algorithms and integrate them into their operations.
When it comes to stock performance, Amazon has seen its share of ups and downs. Over the past year, the stock jumped 41.29% from a low of $149.91 in January 2024 to a high of $233 in December 2024. However, it’s faced some short-term challenges, dipping 1.16 in the year to date.
With a market capitalization of $2.3 trillion and a forward P/E ratio of 42.59x — well above the sector average of 16.94x — it’s clear investors have high growth expectations for Amazon.
Amazon’s Q3 2024 earnings were strong across the board. Net sales rose 11% year-over-year to $158.9 billion, fueled by a 19% jump in AWS revenue to $27.5 billion. Operating income surged 56% to $17.4 billion, while net income climbed to $15.3 billion from $9.9 billion in Q3 2023. The company expects Q4 sales between $181.5 billion and $188.5 billion, signaling continued growth.
Analysts remain bullish on Amazon’s stock with a “Strong Buy” consensus. Out of 49 analysts covering it, 45 rate it a "Strong Buy," three recommend a "Moderate Buy," and just one suggests holding the stock.
Microsoft (MSFT)
Microsoft (MSFT) is a global tech giant with a wide-ranging business that includes software, cloud computing, hardware, and AI solutions. Its main revenue streams come from tools like Microsoft 365, cloud services through Azure, and personal computing products such as Windows and Xbox.
The stock has had a mixed run recently. Over the past year, it climbed 6%, going from its 52-week low of $384.81 in January 2024 to a high of $468.35 in July 2024. Shares are down 2.16% so far in the year to date.
With a market cap of $3.1 trillion and a forward P/E ratio of 32x — higher than the sector average of 24.56x — the stock commands investor confidence.
Microsoft’s Q1 FY25 earnings were solid, with revenue hitting $65.6 billion (up 16% year-over-year) and net income reaching $24.7 billion (up 11%). The Intelligent Cloud segment was a standout, growing 20% to $24.1 billion, thanks to Azure’s impressive 33% revenue jump.
Productivity tools like Microsoft 365 brought in $28.3 billion (up 12%), while gaming and Windows sales pushed the More Personal Computing segment up by 17%. Analysts expect this momentum to continue, especially in cloud and AI services.
Microsoft is also doubling down on AI and healthcare innovation. At Ignite, it partnered with C3 AI (AI) to expand enterprise AI adoption on Azure, boosting its position in the competitive cloud market. It also rolled out new healthcare AI tools through its Cloud for Healthcare platform, aiming to improve patient care and streamline operations with features like conversational data integration and Copilot-driven workflows — key steps toward advancing quantum computing capabilities.
Analysts are very bullish on Microsoft’s future, with a consensus “Strong Buy” rating. The average price target is $510.26, pointing to potential upside of about 22% from its current price.
International Business Machines (IBM)
International Business Machines (IBM) is a major player in hybrid cloud, AI, and quantum computing. With over a century of corporate history, IBM now offers a mix of hardware, software, and consulting services, putting itself at the forefront of the quantum computing push in 2025.
IBM’s stock has had an eventful year. It climbed 31.12% over the past 52 weeks, rising to a high of $239.35 in December 2024. However, 2025 hasn’t started as strong, with the stock down just over 1% in the year to date.
IBM’s market cap is $201 billion, and its forward P/E ratio of 21.28x is below the sector average of 24.56x, suggesting more modest growth expectations compared to its peers. Still, its annual dividend yield of 3% makes it appealing for income-focused investors.
In Q3 2024, IBM reported $15 billion in revenue, up just 1% year-over-year. Its Software segment performed well with 10% growth, including a 14% boost from Red Hat revenue, but challenges in consulting and infrastructure led to a net loss of $317 million. Free cash flow for the quarter was $2.1 billion, bringing the year-to-date total to $6.6 billion. IBM expects to surpass $12 billion in free cash flow for the full year.
Recent moves highlight IBM’s focus on innovation and partnerships. Its work with SAP (SAP) on RISE with SAP aims to speed up cloud migrations for SAP workloads on IBM Power Virtual Servers, helping businesses modernize faster.
Meanwhile, IBM’s partnership with Illinois’ National Quantum Algorithm Center is a big step in quantum computing leadership. By deploying its next-gen Quantum System Two to tackle complex industry problems, IBM is positioning itself as a key player in making quantum technology practical and accessible.
Analysts are cautious about IBM’s stock with a consensus “Hold” rating. The average price target is $224.62, indicating modest upside of about 3.32% from its current price of $217.40.
Conclusion
From Amazon’s cloud-based quantum services to Microsoft’s AI-driven Azure innovations and IBM’s groundbreaking quantum systems, these mega-cap giants are not just fueling the “gold rush” but redefining what’s possible across industries. As they continue to push boundaries in quantum computing, their efforts promise to unlock transformative opportunities for businesses and investors alike, making them key players to watch in 2025 and beyond.
