In the ever-evolving tech investment landscape, quantum computing stocks continue to captivate investors. Investors are interested in which quantum computing stocks to buy now.
Quantum computing promises a paradigm shift in computational capabilities. With industry giants delving deeper into the intricacies of quantum mechanics, discerning investors are always looking for quantum computing stocks to buy now.
We stand on the cusp of a monumental shift akin to the emergence of generative AI, potentially revolutionizing different facets of our digital economy, from healthcare to logistics and even space exploration.
There is growing interest and faith among public equity investors in this groundbreaking technology.
Yet, it is imperative to note that this field, pregnant with potential, is still navigating its nascent stages, contending with growing pressures regarding substantial research capital requisites and the goal of achieving commercial viability.
With that said, lets unravel the quantum computing stocks to buy now, demystifying the giants and newcomers poised to spearhead this exhilarating journey into uncharted territories.
IonQ (IONQ)
The quantum computing horizon continues to radiate with promise, and confidently sitting at the forefront is IonQ (NYSE:IONQ), one of the premiere quantum computing stocks to buy now.
Trading at a modest $4.56 on March 13, the stock has been on an uptrend since the start of the year, reaching a high of $21.60 on Sept. 20 before retreating to the low teens.
The firm’s meteoric rise is anchored firmly in the surging quantum computing sector and its robust earnings trajectory.
IonQ experienced a minor stumble with a loss of 22 cents per share, narrowly missing estimates by 14 cents. Yet, it quickly regained its footing as its sales skyrocketed, doubling to an impressive $5.52 million while outpacing expectations by $1.16 million.
The business posted a record $28 million in bookings in its second quarter, propelling its first-half figures beyond $32 million. Coupled with a freshly revised 2023 bookings range and a tweaked full-year revenue projection, IonQ is a testament to resilient growth in the quantum domain.
Though the stock has pulled back in recent weeks, its strong outlook and long-term trajectory positions to more gains ahead, especially during a bull run.
Defiance Quantum ETF (QTUM)
Navigating the tumultuous waters of the emerging quantum computing sector can be daunting, especially when wagering on single stocks. Such cutting-edge arenas, though teeming with potential, can harbor major risks.
They are vulnerable to market fluctuations and the unpredictable currents of tech advancements. Therefore, its more apt than to wager on exchange-traded funds.
The Defiance Quantum ETF (NYSEARCA:QTUM) is a beacon for those seeking a balanced approach. Encompassing a diversified mix of stocks linked to quantum computing safeguards against the inherent pitfalls of investing in a lone entity.
With a bid/ask % spread of just 0.07% and an expense ratio of 0.40%, roughly 17% lower than the sector median, QTUM stock presents an excellent low-risk way to play the burgeoning quantum computing sphere.
The ETF has holdings in 73 pure and secondary quantum computing plays, including the ones mentioned in the article. Year-to-date, it is up 25% and has delivered almost 100% return over the past five years.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) is a titan in semiconductor manufacturing, which has effortlessly transitioned from a graphics card producer to a formidable force in various cutting-edge tech verticals, including quantum computing.
Its venture into the quantum arena through groundbreaking endeavors such as cuQuantum demonstrates its evolving dynamism and determination to be a trendsetter in the sphere.
Expanding its already rich portfolio, Nvidia has launched cuQuantum. This quantum software development kit seamlessly combines its renowned CUDA programming model and a host of libraries designed to facilitate the creation and execution of quantum applications on its robust GPUs.
This strategic move leverages Nvidia’s steadfast presence in AI and machine learning, presenting it with a distinctive advantage as it navigates the intricacies of quantum computing.
Its second-quarter report paints a vivid picture of a company not just on the rise but soaring, with revenues growing by a staggering $13.5 billion, marking a 101% YOY bump.
Its escalating earnings narrative doesn’t end here, as it delights shareholders with GAAP earnings per share elevated to $2.48, representing a YOY surge of 854%. Moreover, it returned a bountiful $3.38 billion to its shareholders, articulating a strong intent to persist with share buybacks.
The stock is up almost 200% YTD, and though its valuation may feel stretched, its track record and future outlook point to more upside ahead.
Honeywell International (HON)
Diverging from its traditional stronghold in medical devices and aerospace equipment sectors, Honeywell International (NASDAQ:HON) is effectively embracing the future, steering its focus toward the burgeoning realm of quantum computing.
In a strategic alliance with Cambridge Quantum, Honeywell birthed Quantinuum, a quantum computing firm that can effectively navigate the complex quantum ecosystem. This powerhouse leverages the trapped ion technique to craft high-quality qubits, demonstrating a powerful strategy currently leading the charge in the quantum space.
HON stock is currently valued at an attractive 3.5 times forward sales estimates based on historical metrics and considering its A-graded profitability metrics. Hence, acquiring a stake in a quality industrial entity without breaking the bank is an opportune moment.
This presents a chance to invest in a company with a rich legacy and an attractive entry point into the exciting quantum dimension, adding a futuristic edge to one’s investment portfolio.
Microsoft (MSFT)
Pushing the boundaries of tech innovation, Microsoft (NASDAQ:MSFT) stands tall as a beacon in quantum computing, introducing an expansive open-cloud quantum ecosystem.
This powerful platform empowers data engineers to develop quantum applications, setting new industry standards.
Further enhancing its quantum capabilities, Microsoft unveiled the Integrated Hybrid feature in Azure Quantum. This addition marries quantum and classical computing, presenting unparalleled synergy within the cloud.
The tech giant’s strides signal its unwavering commitment to achieving scalable quantum computing.
Azure’s robust performance, with a commendable 26% revenue growth YOY in the fourth quarter of 2023, underlines the company’s dominance in both the quantum and cloud spaces. As the tech landscape evolves, Microsoft’s forays into quantum show its vision of shaping and leading the future.
MSFT stock is up 35.4% YTD, riding on the coattails of AI advancements, with analysts at Tipranks pointing to a 20% upside from current price levels.
Alphabet (GOOG,GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), renowned for its iconic search services via Google, also boasts a robust presence in the quantum computing landscape with its groundbreaking processor, Bristlecone.
This 72-qubit marvel minimizes data testing errors and seamlessly integrates with essential software and field control electronics. In 2022, Alphabet underscored its commitment by launching Sandbox AQ, a private entity focused on quantum computing and AI.
This offshoot is already breaking new ground, targeting sectors including GPS mapping, drug development, cybersecurity, and other key areas.
As Alphabet forges ahead, enhancing its quantum systems for more storage and performance, it’s poised to amplify its cloud computing and AI capabilities. GOOGL stock stands as a promising long-term prospect for investors, reinforced by Alphabet’s track record of profitability and innovation.
The stock is up more than 53.7% YTD, outperforming the S&P 500’s gain of 15.6%.
D-Wave Quantum (QBTS)
Despite facing recent headwinds following a post-earnings correction, D-Wave Quantum (NYSE:QBTS) presents investors with a worthwhile speculative bet in the quantum computing sphere.
The firm is the first to sell quantum computers leveraging quantum effects in British Columbia.
A deeper look at its business model and fundamentals showcases multiple enterprises’ recognition and utilization of its quantum annealing technology, including respected names in aerospace and defense and governmental agencies.
D-Wave foresees a revenue range of $11 million to $13 million for 2023, translating to a promising YOY growth between 52.8% and 80.5%. With the shares trading under a dollar and a cloud platform, Leap, in its arsenal, betting on D-Wave might be a potentially lucrative bet down the line.
However, exercising caution and wagering only a miniscule portion of your portfolio to such a speculative investment is imperative.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.