IONQ - The 3 Smartest Quantum Computing Stocks to Buy With $5K Right Now
2024-07-11 06:15:00 ET
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Quantum computing stocks present a thrilling frontier for investors. The industry’s promise to exponentially accelerate problem-solving capabilities across various sectors, such as cryptography, drug discovery, and optimization problems, is increasingly appealing. This transformative potential has poised quantum computing stocks as pivotal investments for those looking to capitalize on next-generation technology.
As per McKinsey, public investments in quantum technology have grown significantly, increasing by over 50% since 2022, totaling approximately $42 billion globally . This increase is driven by countries like Germany, the UK, and South Korea, indicating a strong governmental interest in quantum technology.
For investors ready to engage with this high-potential market, the current moment offers a strategic entry point. In this context, here are three quantum computing stocks to buy for significant rewards in the future.
Rigetti Computing (RGTI)
Rigetti Computing (NASDAQ: RGTI ) stands out in the burgeoning field of quantum computing. Founded in 2013, Rigetti made significant strides in developing full-stack quantum computing services, offering them through its cloud-based platform, Forest.
The company reported generating over $3 million in revenue in Q1, marking a 39% year-over-year (YOY) growth. This growth primarily stems from its technology development contracts and quantum processing unit (QPU) sales. Despite ongoing operating losses, Rigetti’s financial health shows signs of improvement, with a narrowed net loss and a robust liquidity position of over $102 million in cash and short-term investments by the end of Q1.
Rigetti’s dedication to innovation is evident in its recent launch of the Novera QPU partnership program. This initiative advances quantum computing by fostering collaboration and technological integration across various aspects of the quantum stack.
The company has already secured partnerships with notable firms such as Riverlane in the UK for error correction and Quantum Machines in Israel for control systems. These collaborations are expected to enhance Rigetti’s market position and drive future QPU sales.
IonQ (IONQ)
IonQ (NYSE: IONQ ) is a pioneering force in the quantum computing industry. Despite being a relatively young player, IonQ has made remarkable strides in advancing quantum computing technology, especially with its unique approach using trapped ion technology.
IonQ has carved out a niche in the quantum computing sector with its trapped ion technology, which is considered to have several advantages over other quantum systems, such as superconducting qubits. This technology offers longer coherence times and potentially more scalable solutions. These features are pivotal for solving complex computational problems currently beyond the reach of classical supercomputers.
In 2023, IonQ announced significant advancements, including the development of next-generation quantum systems such as the IonQ Forte and the upcoming Tempo system. Moreover, the company has been proactive in forming strategic alliances across various sectors, including finance, automotive, and aerospace. Partnerships with notable companies like Airbus and Hyundai aim to explore quantum computing’s utility in optimizing logistics and material sciences. These collaborations not only validate IonQ’s technology but also enhance its credibility and market presence.
Honeywell (HON)
Honeywell (NASDAQ: HON ) stands out as a pivotal player in the diversified industrial sector. The company has positioned itself as a significant player in the rapidly evolving field of quantum computing through its dedicated unit, Honeywell Quantum Solutions. This division focuses on developing advanced quantum computing technologies that utilize trapped ion technology.
In the Q1 2024 earnings call, the company exceeded its adjusted earnings-per-share ( EPS ) guidance and achieved healthy organic sales growth. Honeywell’s Q1 revenue was $9.11 billion, a 2.72% YOY increase, with an EPS of $2.25, surpassing estimates by $0.07.
Honeywell’s Quantum Solutions division has set records in quantum volume, indicating strong performance and scalability of its quantum systems. Strategic collaborations, such as with Microsoft on quantum computing experiments, demonstrate Honeywell’s commitment to innovation and the commercialization of quantum technologies.
The company plans to monetize its quantum business around 2025, leveraging advancements and market readiness.
On the date of publication, Mohammed Saqib did not hold (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 .
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.
Mohammed Saqib is a research analyst with experience in equity research and financial modeling. He has extensively covered stocks listed in the tech sector using fundamental analysis as the cornerstone of his approach. Currently pursuing a master’s degree in finance, Saqib is dedicated to obtaining the CFA charter to augment his expertise in the field further.
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