FORM - Rag to Riches: 3 Quantum Computing Stocks That Could Make Early Investors Rich

2024-06-18 08:15:00 ET

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Quantum computing stocks should be in the portfolios of all smart investors because, like generative AI, the idea has the potential to change everything, which is why experts think the market could be worth $93 billion by 2040.

Analysts are excited about the space because the industry is changing quickly. For example, making ultra-pure silicon chips is a big step forward that could help quantum computers get faster and stronger.

Aside from the fast progress being made in the field, the laws that are being made for this new area are also very important in understanding the strength of quantum computing stocks. The National Quantum Initiative Act sets up a government attempt to speed up the study and growth of quantum physics. The Department of Energy also set aside $24 million on quantum network tests, and more recently, the U.S. and Germany agreed to work together on quantum computing projects.

That being said, when investing in quantum computing stocks, one must remember that this is still a new area. The ability to make quick cash exists; however, the possibility of getting burned is also there, which is why it’s best to stick with tried-and-tested performers rated highly by analysts.

Alphabet (GOOG, GOOGL)

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) controls multiple companies, including YouTube, which has 4.95 billion daily active users , and Google, which has roughly 92% of the search industry. It’s also making waves in quantum computing.

Alphabet collaborates with J.P. Morgan (NYSE: JPM ) for financial services optimization, CERN for particle physics, Airbus (OTCMKTS: EADSY ) for aerospace, and Volkswagen (OTCMKTS: VWAGY ) for automotive improvements.

To reduce quantum computing errors using Google Quantum AI is a huge step forward. Sycamore 3 processors improve control integrity, cross-talk, qubit relaxation, and dephasing.

Google researchers demonstrated quantum teleportation via a measurement-induced phase shift in a 70-qubit quantum device. This finding increases our understanding of quantum entanglement and explains how to manufacture it across long distances, which is vital for future quantum communication networks.

Additionally, Google, the XPRIZE Foundation, and GESDA are hosting a $5 million contest to develop quantum computing algorithms. Thus, Alphabet, with a strong buy rating and four earnings beats in a row, including a 25% surprise, is one of the best all-around quantum computing stocks around.

Nvidia (NVDA)

Nvidia (NASDAQ: NVDA ) became the second most valuable company in the world recently with $3 trillion after posting record revenues of $26 billion , up 18% sequentially and 262% from a year ago, and $5.98, up 21% from the previous quarter and 629% from a year ago.

While much of the attention goes towards its AI-oriented processors, Nvidia is also making waves in the quantum computing field, establishing its reputation among industry insiders as one of the top quantum computing stocks out there.

Using its open-source CUDA-Q platform, Nvidia has sped up work on quantum computing at a number of national supercomputing centers around the world. In Germany, Japan, and Poland, this platform is now an important part of supercomputing sites.

Nvidia is also working with Australia’s Pawsey Supercomputing Research Centre to advance quantum computing. They are installing eight Nvidia Grace Hopper Superchip nodes, which combine CPU and GPU operations to boost performance.

In addition, together with Rolls-Royce and Classiq , Nvidia has made a quantum computing breakthrough that will help make jet engine designs more efficient. Using Nvidia’s quantum platform to improve the merging of quantum and traditional computing systems, this project aims to build the world’s biggest quantum computing circuit for computational fluid dynamics.

FormFactor (FORM)

FormFactor (NASDAQ: FORM ) provides quantum engineers with a variety of cryogenic test and measurement options; it recently paired up with Tabor Electronics to develop the Echo-5Q , a fully integrated 5-qubit quantum computer.

This program gives scientists and engineers high-quality physical qubits for research and workforce development using QuantWare’s QPU. FormFactor’s LF-600 cryogen-free dilution cooler measures silently down to 5 mK, while Tabor’s Proteus Direct to RF control circuits give reliable readings.

The PQ500 high-density probe socket from FormFactor removes wire bonding between high-performance quantum and conventional superconducting integrated circuits. This speeds quantum computing processor die testing and characterization, simplifying SEEQC development. FormFactor’s probe socket technology speeds the response of superconducting IC and multi-chip module foundries.

What’s more, the Model 106 ADR Cryostat provides cryogen-free chilling to ultra-low temperatures for superconducting qubits, improving quantum computing test efficiency and reliability.

On the topic of financials, first-quarter 2024 sales were $168.7 million , up slightly from the previous quarter. FORM’s Q1 net income of $21.8 million, or $0.28 per share, beat $1.3 million last year. The sale of its Chinese business unit made a big profit and allowed FORM to concentrate fully on semiconductor testing and quantum computing.

On the date of publication, Faizan 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 .

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