ARQQ - The Top 3 Growth Stocks in Quantum Computing
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Quantum computing, once fully commercialized, could lead humanity into a new frontier. Technologies we use at limited scale today such as artificial intelligence (AI) and large language models (LLMs) like ChatGPT will have the key resource they need to grow significantly in strength and magnitude.
Processing power is the limiting factor for us to reach highly advanced technologies. Current chips have a constrained surface area since they can only be made so small. Exponential leaps in processing power have stopped being made, leading Nvidia’s (NASDAQ:NVDA) CEO Jensen Huang to remark in a Q&A session last year that “Moore’s law is dead.”
Quantum computing could be the way forward, but the technology remains experimental and the companies that develop it are still firmly in the research and development (R&D) stages. Commercialization is a good decade or so away.
But for patient investors, this means we can hop on board quantum computing growth stocks today before they become too expensive, and potentially realize outsized gains once the rest of the market catches on.
Inventors can therefore consider the following quantum computing growth stocks to buy now.
IonQ (IONQ)
IonQ (NYSE:IONQ) is a pure-play quantum computing stock and has built up serious momentum over the last several years. The company’s quantum solution Ion Q Aria was integrated into Microsoft’s (NASDAQ:MSFT) Azure hybrid cloud platform in January this year, thus marking a major step in quantum computing’s commercialization.
Wall Street is bullish on IonQ’s prospects, as it presently has a $9.50 analyst price target, thus giving it 105.2% potential upside at the time of writing. Part of what makes it a cheap quantum computing stock is that it’s currently trading near the bottom of its 52-week range, down from a high of $15.44.
IonQ reported a negative earnings per share (EPS) in the third quarter last year of 12 cents. Revenues stood at $2.76 million and grew from $2.61 million in the second quarter.
Arqit Quantum (ARQQ)
Arqit Quantum (NASDAQ:ARQQ) is another quantum computing growth stock that deserves your attention. The company is developing quantum computing networks to provide secure and encrypted communications, as well as data storage and computing power for a variety of applications.
The company has onboarded some quality partners in the cybersecurity space, including Nine23, a company that helps secure the private cloud infrastructures for various blue-chip clients, such as the government of the United Kingdom. Nine23 will make Arqit’s QuantumCloud technology available through its digital marketplace, thereby allowing its government and commercial clients to tap into Arqit’s quantum capabilities.
Arqit is one of the few quantum stocks that are profitable. Analysts expect its bottom line to increase appreciably in the coming year, projecting an increase to 27 cents apiece.
D-Wave Systems (QBTS)
D-Wave Quantum (NYSE:QBTS) is one of the world’s first commercial quantum computing companies, providing quantum technology and services for business and government organizations. Its quantum computing platform, the D-Wave 2000Q system, harnesses the power of quantum mechanics to solve complex optimization problems.
D-Wave is also picking up steam toward full-blown commercialization. The company made its processing power available to developers via the Amazon (NASDAQ:AMZN) AWS marketplace in October last year, thus introducing a new stream of revenue for the company.
The opinion on Wall Street about the stock, however, is not so cut and dry. On one hand, the company’s shares have an astonishing 852.4% upside at the time of writing, which means it has a $6.67 price target. This rating was given by four different analysts. But on the other hand, not only is D-Wave unprofitable, its losses are projected to expand. Its EPS is negative at 45 cents, and it’s expected to fall further to 61 cents.
On the date of publication, Matthew Farley 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.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
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