Quantum computing has the potential to solve complex problems that are beyond the reach of classical computers. Even better, analysts at the International Data Corporation (IDC) say the global quantum computing market could be worth well over $8.6 billion by 2030. So, there’s plenty of opportunity, even for the companies still in the early stages of development and commercialization. In fact, I’ve listed three of the top quantum computing stocks investors may want to consider buying and holding for the long haul.
Quantum Computing Stocks: Quantum Computing (QUBT)
Quantum Computing (NASDAQ:QUBT) is a small $92.1 million company that’s developing software solutions for quantum computers. One of those solutions is its cloud platform Qatalyst, which allows users to access and optimize quantum algorithms for various use cases, such as machine learning, finance, and even cybersecurity. While the QUBT stock trades for about $1, it could turn out to be a rewarding trade idea. All as demand for quantum computing solutions grows.
Earnings growth has been solid. In fact, in the second quarter, the company posted revenues of $112,000, as compared to the $65,000 recorded a year earlier. Also, for the first six months of 2023, revenues jumped 141% year over year to $233,000. In addition, as noted in the company’s earnings release, “As the Company has only recently entered its commercialization phase, revenues were expected to be minimal during the first half of 2023; however, as contracted testing and a backlog of proof-of-concept projects demonstrate positive results, the Company anticipates increasing revenue sequentially as the year progresses and into 2024.”
Nvidia (NASDAQ:NVDA) needs little introduction at this point. The graphics card maker has transformed into one of the most important semiconductor companies of the decade, specializing in graphics processing units (GPUs) for gaming, data centers, and artificial intelligence. Unknown to some, Nvidia is, however, one of the key players in quantum computing, with its Tensor Core GPUs used to power some of the most advanced quantum simulators and algorithms.
Further, Nvidia has developed its own quantum software development kit and platform called cuQuantum, which leverages its CUDA programming model and libraries to enable developers to create and run quantum applications on Nvidia GPUs. Similar to other quantum computing firms in the space, Nvidia collaborates with various quantum hardware providers, such as IBM (NYSE:IBM), IonQ (NYSE:IONQ), and D-Wave Quantum (NYSE:QBTS), to integrate its cuQuantum platform with their quantum devices.
Nvidia is a growth powerhouse that offers exposure to quantum computing as well as many other booming markets. The stock has gained over 221% year-to-date and shows no signs of slowing down. Quantum computing could very well be Nvidia’s next breakthrough.
Founded in 2015 by two leading quantum physicists from the University of Maryland and Duke University, IonQ was the first pure-play quantum computing firm. IonQ uses trapped ion technology to build its quantum computers. Even better, the company has a partnership with Amazon Web Services (AWS) and other cloud providers to offer its quantum computing services on the cloud.
While IonQ’s revenues are still low, the company does boast a strong balance sheet with $375 million in cash and short-term investments with no debt. And while IonQ is a high-risk, high-reward investment, it could pay off handsomely if it can maintain its technological edge and expand its customer base. Given the potential of quantum computing and IonQ’s leadership position, the stock could still have more room to run.
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 InvestorPlace.com Publishing Guidelines.