Jim Cramer Says “The Only Viable Quantum Businesses Belong to Google, IBM, and Honeywell (HON)”

Why It Matters

Cramer’s endorsement could attract capital to Quantinuum and reinforce Honeywell’s spin‑off strategy, shaping market perception of quantum‑focused investments.

Key Takeaways

• Google, IBM, Honeywell deemed only viable quantum businesses today
• Honeywell retains 54% ownership of Quantinuum after spin‑off
• Quantinuum spin‑off scheduled for later 2024, creating separate public entity
• Cramer calls current quantum stocks “science projects” lacking revenue
• Investor focus may shift to firms with proven quantum hardware

Pulse Analysis

The quantum computing market has surged from speculative research to a multi‑billion‑dollar industry, driven by breakthroughs in qubit stability and error correction. Tech giants such as Google and IBM have already demonstrated quantum advantage in niche tasks, positioning them as de‑facto leaders. This momentum has attracted both venture capital and corporate R&D budgets, yet most publicly traded quantum firms remain early‑stage projects, lacking scalable products or clear revenue streams. Analysts therefore differentiate between hype‑driven entrants and companies with tangible hardware or software platforms that can be monetized.

Honeywell International’s decision to spin off its quantum division as Quantinuum reflects a strategic pivot toward unlocking shareholder value. By retaining a 54% stake, Honeywell ensures continued upside participation while granting Quantinuum an independent balance sheet to pursue dedicated funding, partnerships, and customer contracts. The spin‑off, slated for later 2024, will list a pure‑play quantum entity, enabling investors to price the business on its own merits rather than as a subsidiary of an industrial conglomerate. Quantinuum inherits Honeywell’s expertise in trapped‑ion technology, a leading approach for high‑fidelity qubits, and aims to commercialize quantum‑ready solutions for aerospace, defense and pharmaceutical applications.

For investors, Cramer’s endorsement serves as a catalyst that may shift capital toward firms with proven quantum hardware, especially Quantinuum’s newly minted public shares. The market will scrutinize Quantinuum’s ability to transition from research milestones to revenue‑generating services, such as quantum‑as‑a‑service (QaaS) and licensing of ion‑trap patents. Valuation models will need to balance long‑term growth potential against the high R&D intensity typical of the sector. As the quantum ecosystem matures, companies that can demonstrate scalable architectures and secure enterprise contracts are likely to capture the bulk of future investment, reinforcing the narrative that only a handful of players—Google, IBM and Honeywell’s Quantinuum—currently possess viable quantum business models.