Barclays Sees $100 Billion Quantum Market as 45 Stocks Emerge

Barclays analysts forecast the quantum computing market will generate $100 billion in demand by 2040, predicting systems will surpass classical computers in real-world applications as soon as 2027. The firm dismisses concerns of hype, arguing that the long-term investment opportunity in quantum is likely underestimated.

"The next five years will reshape computational power," the Barclays report states, highlighting progress toward scalable systems that can finally outpace traditional computers. The firm believes the delivery of fault-tolerant systems by 2030 will be "the most material inflection-point for quantum computing."

The 70-page report identifies 2027 as the target for demonstrating "quantum advantage," assuming the results withstand rigorous technical scrutiny. Analysts believe this will be achieved when systems reach 100 logical qubits. By 2040, Barclays projects a $100 billion market, driven not by replacing classical computers but by supplementing them to solve complex problems. This hybrid approach is championed by industry leaders like Nvidia (NVDA) CEO Jensen Huang.

The analysis suggests that rather than cannibalizing traditional computing, quantum will increase overall demand, particularly for GPUs needed for quantum error correction. "Conversations with partners in Silicon Valley suggest the demand for GPUs for quantum error correction is shaping up to be large," the firm added. This outlook has significant implications for a wide range of companies beyond the well-known pure-plays.

The Quantum Value Chain

A key takeaway from the Barclays report is that the investment landscape extends far beyond pure-play quantum companies like IonQ (IONQ), Rigetti Computing (RGTI), and D-Wave Quantum (QBTS). The firm has identified 45 publicly traded and 80 private companies that constitute the "quantum value chain," offering investors a more diversified risk profile.

This ecosystem includes:

Test Equipment: Players like Keysight Technologies.
Photonics: Companies such as Coherent (COHR).
Isotope Enrichers: Firms like ASP Isotopes.
Semiconductor Manufacturing: Barclays sees a long-term revenue opportunity for giants like ASML, Applied Materials, and Lam Research.
Software & Simulation: Vendors like Synopsys and Cadence are crucial for designing and simulating quantum chips.
Ecosystem Enablers: Cloud providers like Microsoft and Amazon, which provide access to quantum processing units, along with Dell Technologies and Hitachi.

Horizon's Software Niche

While many companies focus on hardware, Horizon Quantum (HQ) is carving out a niche as the industry's first publicly traded software specialist. The company, which went public in March 2026 via a SPAC merger, recently reported a net loss of $3.6 million for Q1 2026, an improvement from a $4.8 million loss the prior year.

CEO Joe Fitzsimons, a quantum researcher, argues that a software-first approach is essential to overcome the industry's talent shortage. "Consulting simply cannot scale to meet growing customer demand," Fitzsimons told Barron's. Horizon is developing a compiler that automatically transforms code written for conventional computers into efficient quantum algorithms, aiming to be the connective tissue in hybrid quantum-classical systems.

Horizon's public debut comes amid a new wave of quantum companies entering the market, including Infleqtion and Xanadu Quantum Technologies. With $96.6 million in cash reserves, Horizon plans to migrate early customers to a usage-based pricing model as the technology matures.

This article is for informational purposes only and does not constitute investment advice.