Wall Street’s Favorite Quantum Computing Stocks? 3 Names That Could Make You Filthy Rich

Quantum computing is likely to bring about another revolution in computing that will overshadow the prescient artificial intelligence (AI) craze. This kind of computing technology has the potential to solve complex problems that generally slow down classical computers, such as optimization, cryptography, machine learning and simulation.

Investors who are already looking for the next market sensation are considering a few names in the nascent quantum computing space. Wall Street has caught wind of some of the quantum computing names that could make successful plays in the long term. Below are three such quantum computing stocks.

IonQ (IONQ)

IonQ (NYSE:IONQ) was the first pure-play among publicly traded quantum computing stocks, and the company has become the leader in trapped-ion quantum computing. This subset of quantum computing uses electrically charged atoms to store and manipulate qubits.

To date, the company claims to have built the world’s most powerful quantum computer which has achieved a quantum capacity 32 qubits. IonQ plans to launch modular quantum computers by the end of 2023. To make the computing power of its quantum computers more accessible, IonQ has made its quantum computing power accessible to customers and developers through large cloud platforms.

IonQ ended 2023 with another successful quarter. Fourth-quarter earnings results saw the quantum computing firm generate full-year revenue figures well above the high end of its guidance range. This was the same for bookings. IonQ also announced the production of its Enterprise Forte quantum computer in its Seattle manufacturing facility. Deliveries for these quantum systems are slated for the end of 2024.

IonQ’s shares are down more than 25% year to date, which could make a good entry point for new investors or investors willing to increase their investment. Quantum computing, similar to generative AI, has the potential to be the next big thing in technology, and IonQ is at the forefront of the space.

Rigetti Computing (RGTI)

Rigetti Computing (NASDAQ:RGTI) is a pure-play quantum computing business that is vertically integrated. This means the company is involved in both designing and manufacturing its multi-chip quantum processors. Rigetti uses superconducting circuits as qubits fabricated on silicon chips and operating at near-zero temperatures. To deliver its quantum computing capabilities to clients, Rigetti leverages cloud service networks while also providing quantum software development tools as well as quantum hardware design and manufacturing.

In January, Rigetti Computing announced the availability of its 84-qubit Ankaa-2 quantum computing system, which will be accessible through Rigetti’s cloud service. Similar to its competitor IonQ, Rigetti announced a successful Q4 earnings period, which saw both revenue and earnings per share beat Wall Street estimates.

RGTI’s shares have risen 78% from a year-to-date perspective but have fallen nearly 7% since the start of the month. This creates the potential for a buy-in opportunity.

D-Wave Quantum (QBTS)

D-Wave Quantum (NYSE:QBTS) is a well-established quantum computing company. In particular, D-Wave specializes in quantum annealing, a computing technique used to find the optimal solution for a given problem. The quantum computing firm has successfully built several quantum annealers with more than 5,000 qubits, which allows greater potential for commercial applications.

D-Wave Quantum offers its quantum annealers and software tools through its cloud platform, Leap. QBTS also offers a suite of developer tools called Ocean, which helps users design, develop and deploy quantum applications. The quantum computing company has a diverse customer base, including government agencies and corporations. Most recently, D-Wave released its 1200+ qubit Advantage2 quantum computing machine prototype. Those already subscribed to the D-Wave Leap platform can access the prototype and test out its capabilities.

QBTS has enjoyed a jaw-breaking rally in 2024. So far, shares have skyrocketed 147% since the start of the year. D-Wave Quantum is, of course, a small-cap stock, making its shares inherently volatile, but there is still no doubt the company will be one of the leaders in the pack of quantum computing specialists. Wall Street also seems pleased, giving the stock a solid “Strong Buy” rating. Investors looking to make a quantum computing bet should definitely look into D-Wave Quantum.

On the date of publication, Tyrik Torres 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 biedexmarkets.com.com Publishing Guidelines.