In this episode of ETF Spotlight, I speak with Zacks Senior Stock Strategist Kevin Cook about quantum computing. Quantum stocks have surged recently as investors speculate on the next big thing in tech after AI.

The frenzy has intensified since Google GOOG unveiled its new computer chip, Willow, which can perform calculations in less than five minutes that would take one of the world's most powerful supercomputers almost an eternity.

Unlike traditional computers that use binary digits, or bits, which can only represent 0 or 1, quantum computers use quantum bits, or qubits.

Qubits rely on quantum effects such as superposition -- where particles can exist in multiple states simultaneously -- and entanglement, where particles remain interconnected even when physically separated.

Thanks to these properties, quantum computers can process information at exponentially faster rates than conventional computers and have the potential to revolutionize the world by solving problems currently deemed impossible.

However, qubits are fragile and can hold their quantum states for only tiny fractions of a second, meaning any information they store is quickly lost. Additionally, they must be kept at extremely cold temperatures.

Due to these challenges, commercially viable quantum computing is still far from reality. However, recent advancements suggest these advanced machines could be years, not decades, away.

Some of the world's largest companies, including Microsoft MSFT, Google, Amazon AMZN, and NVIDIA NVDA are actively developing quantum computers or advancing quantum technologies.

Meanwhile, smaller pure-play quantum companies such as Rigetti Computing RGTI , D-Wave Quantum QBTS, and IonQ IONQ have seen parabolic gains recently.

In his report -- Beyond AI: The Quantum Leap in Computing Power -- Kevin explains why investors should be cautious with smaller companies that may be many years from generating meaningful revenues, and why NVIDIA is his top pick for capitalizing on this theme.

Since it's too early to predict clear winners, a diversified approach through ETFs makes sense. The Defiance Quantum ETF (QTUM) invests in companies at the forefront of quantum computing and other transformative computing technologies.