Despite taking a hit in April, quantum computing stocks have a long runway ahead
Quantum computing stocks on the whole took a generous hit in April, mostly due to the markets realization that interest rates will not be going down any time soon. Moreover, the U.S. Labor Departments most recent report on inflation has stymied any hopes of a near-term rate cut, with the most likely date for cuts now occurring in September of 2024 if inflation continues to cool. According to the report, year-over-year inflation numbers decreased from 3.5% to 3.4%. Most consumers wont notice, but it shows the right trend and might motivate larger corporations to rethink expenditures.
After all, the world of quantum computing relies heavily on expenditures in the esoteric. Many of the investments made today to progress the technology may not see maturation for decades to come. As such, investors should be very picky about which quantum computing stocks to buy. Not all are created equal, and may not have equal shares of the future of this revolutionary technology.
Source: shutterstock.com/LCV
Ive been bullish before on International Business Machines (NYSE:IBM) due to its contributions to artificial intelligence and nanomaterials. Many of the companys advantages in the world of technology come from its mastery of computer design and manufacturing. Nowhere is this more evident than in IBMs quantum computing projects, which offer a return to massive supercomputers of the 20th century, yet at computing speeds exponentially more powerful.
From its Quantum System Two to the new Heron Processor, IBM is constantly on the cutting edge of quantum technology and shows no signs of slowing down. For investors, this means investing in a company with both the capital and reputation to lead in new quantum technologies.
Furthermore, IBM is incredibly well-diversified, touching several industries from consumer to corporate computers, to AI models and beyond. Thus, even if its quantum computing projects underperform, IBM has diverse ways to make it up to investors.
Source: T. Schneider / Shutterstock
Branding itself as the practical quantum computing company, D-Wave Quantum (NYSE:QBTS) still sits at a significant discount from its special acquisition company merger (SPAC) price of around $10. Two years after going public via the SPAC, the company has lost 87% of its value. This means trouble for anyone who bought into it then. However, the tides are turning for D-Wave Quantums stock, as the company has one of the most pertinent business models in quantum computing stocks to buy list.
By leveraging its resources in quantum computing data centers, the company offers The Leap quantum cloud service, which makes the power of quantum computers available for a fraction of the price. Subscribers can use quantum cloud computing to solve mathematical algorithms at fractions of the speed of traditional computing.
Ultimately, this business model has resulted in the companys Q1 2024 revenue up 56% year-over-year (YOY) with Q1 bookings up 54% YOY and gross profit up 294% YOY. As such, QBTS could easily be a quantum computing stock to buy due to sheer value for money.
Source: Amin Van / Shutterstock.com
From a quantum computing technology standpoint, IonQ (NYSE:IONQ) still offers some of the most compelling computers on the market. Thats because IONQs proprietary design relies on electromagnetism and atomic interactions to perform sustained calculations. From a quantum mechanics standpoint, this allows for solving far more complex and time-consuming algorithms. These computers are also exceptionally scalable to customer needs, making them versatile.
This is why I recommended the stock back in March 2024. Now Im doubling down on my recommendation thanks to its recent Q1 2024 report showing decent revenue growth. Though somewhat meager, its $7.6 million in revenue for the quarter represents a 77% growth year-over-year. Moreover, the company is keeping generous cash reserves at $434.4 million to maintain operations and research around its projects.
Bearing all this in mind, analysts have awarded the stock strong buy ratings for now. As a result, investors looking for a pure-play in quantum computing should not pass up IONQ.
On the date of publication, Viktor Zarevdid 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.comPublishing Guidelines.
Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.
Read the original post:
The 3 Best Quantum Computing Stocks to Buy in May 2024 - InvestorPlace
- Two Quantum Computers Face-Off for the First Time in History! - Interesting Engineering [Last Updated On: February 26th, 2017] [Originally Added On: February 26th, 2017]
- Split decision in first-ever quantum computer faceoff | Science | AAAS - Science Magazine [Last Updated On: February 26th, 2017] [Originally Added On: February 26th, 2017]
- How to defend against quantum computing attacks - ScienceBlog.com - ScienceBlog.com (blog) [Last Updated On: February 28th, 2017] [Originally Added On: February 28th, 2017]
- Researchers Have Directly Tested Two Quantum Computing ... - Futurism [Last Updated On: February 28th, 2017] [Originally Added On: February 28th, 2017]
- Scientists reveal new super-fast form of computer that 'grows as it ... - Phys.Org [Last Updated On: March 2nd, 2017] [Originally Added On: March 2nd, 2017]
- Andreas Antonopoulos: Bitcoin's Design Can Withstand Quantum Computer Attack - CryptoCoinsNews [Last Updated On: March 2nd, 2017] [Originally Added On: March 2nd, 2017]
- IBM QISKit Aims to Enable Cloud-basaed Quantum Computation - InfoQ.com [Last Updated On: March 11th, 2017] [Originally Added On: March 11th, 2017]
- Legacy of brilliant young scientist is a major leap in quantum ... - Phys.Org [Last Updated On: March 11th, 2017] [Originally Added On: March 11th, 2017]
- IBM Q is the first initiative to build commercial quantum computing systems - BetaNews [Last Updated On: March 11th, 2017] [Originally Added On: March 11th, 2017]
- IBM To Commercialize Quantum Computing - ADT Magazine [Last Updated On: March 11th, 2017] [Originally Added On: March 11th, 2017]
- Quantum computer learns to 'see' trees - Science Magazine [Last Updated On: March 11th, 2017] [Originally Added On: March 11th, 2017]
- David Deutsch and His Dream Machine - The New Yorker [Last Updated On: March 11th, 2017] [Originally Added On: March 11th, 2017]
- Quantum computers are here -- but what are they good for? - PCWorld [Last Updated On: March 18th, 2017] [Originally Added On: March 18th, 2017]
- IBM's first commercial quantum computer could shake-up chemistry ... - Chemistry World (subscription) [Last Updated On: March 18th, 2017] [Originally Added On: March 18th, 2017]
- Quantum computing takes a massive step forward thanks to ... - TechRadar [Last Updated On: March 18th, 2017] [Originally Added On: March 18th, 2017]
- Better than Quantum Computing: The EU Launches a Biocomputer ... - Labiotech.eu (blog) [Last Updated On: March 21st, 2017] [Originally Added On: March 21st, 2017]
- In a few years new Quantum computers from IBM, Google and Microsoft will accelerate breakthroughs in chemistry and ... - Next Big Future [Last Updated On: March 21st, 2017] [Originally Added On: March 21st, 2017]
- Research project successful: Volkswagen IT experts use quantum ... - Automotive World (press release) [Last Updated On: March 21st, 2017] [Originally Added On: March 21st, 2017]
- Rechargeable 'spin battery' promising for spintronics and quantum ... - Phys.Org [Last Updated On: April 22nd, 2017] [Originally Added On: April 22nd, 2017]
- The First Quantum Computer You Own Could Be Powered by a Time Crystal - Futurism [Last Updated On: April 22nd, 2017] [Originally Added On: April 22nd, 2017]
- Microsoft to double headcount of Sydney quantum computing lab ... - Computerworld Australia [Last Updated On: April 22nd, 2017] [Originally Added On: April 22nd, 2017]
- Could Time Crystals Hold The Key To Building The First Quantum Computer? - Wall Street Pit [Last Updated On: April 22nd, 2017] [Originally Added On: April 22nd, 2017]
- Microsoft boosts Aussie quantum computing team - ARN - ARNnet [Last Updated On: April 26th, 2017] [Originally Added On: April 26th, 2017]
- Will Google Be The First To Achieve Quantum Computing Supremacy? - Wall Street Pit [Last Updated On: April 26th, 2017] [Originally Added On: April 26th, 2017]
- Computing on the boundary between conventional and quantum - Electronics Weekly [Last Updated On: April 29th, 2017] [Originally Added On: April 29th, 2017]
- Quantum cryptography - Wikipedia [Last Updated On: April 29th, 2017] [Originally Added On: April 29th, 2017]
- Beyond classical computing without fault-tolerance: Looking for the ... - Phys.Org [Last Updated On: April 30th, 2017] [Originally Added On: April 30th, 2017]
- Quantum Computing | D-Wave Systems [Last Updated On: April 30th, 2017] [Originally Added On: April 30th, 2017]
- quantum computer - WIRED [Last Updated On: April 30th, 2017] [Originally Added On: April 30th, 2017]
- World's First Quantum Computer Is Here - Wall Street Pit - Wall Street Pit [Last Updated On: May 7th, 2017] [Originally Added On: May 7th, 2017]
- China adds a quantum computer to high-performance computing arsenal - PCWorld [Last Updated On: May 7th, 2017] [Originally Added On: May 7th, 2017]
- The Quantum Computer Revolution Is Closer Than You May Think - National Review [Last Updated On: May 7th, 2017] [Originally Added On: May 7th, 2017]
- China builds five qubit quantum computer sampling and will scale to 20 qubits by end of this year and could any beat ... - Next Big Future [Last Updated On: May 7th, 2017] [Originally Added On: May 7th, 2017]
- Researchers seek to advance quantum computing - The Stanford Daily [Last Updated On: May 14th, 2017] [Originally Added On: May 14th, 2017]
- New Materials Could Make Quantum Computers More Practical - Tom's Hardware [Last Updated On: May 14th, 2017] [Originally Added On: May 14th, 2017]
- Nanofridge could keep quantum computers cool enough to calculate - New Scientist [Last Updated On: May 14th, 2017] [Originally Added On: May 14th, 2017]
- Home News Computer Europe Takes Quantum Computing to the Next Level With this Billion Euro... - TrendinTech [Last Updated On: May 14th, 2017] [Originally Added On: May 14th, 2017]
- Quantum Computing Demands a Whole New Kind of Programmer - Singularity Hub [Last Updated On: May 14th, 2017] [Originally Added On: May 14th, 2017]
- Refrigerator for quantum computers discovered - Science Daily [Last Updated On: May 14th, 2017] [Originally Added On: May 14th, 2017]
- Scientists Invent Nanoscale Refrigerator For Quantum Computers - Wall Street Pit [Last Updated On: May 14th, 2017] [Originally Added On: May 14th, 2017]
- IBM builds two new Quantum Computing processors - Enterprise Times [Last Updated On: May 18th, 2017] [Originally Added On: May 18th, 2017]
- Quantum Computers Sound Great, But Who's Going to Program Them? - TrendinTech [Last Updated On: May 18th, 2017] [Originally Added On: May 18th, 2017]
- IBM makes a leap in quantum computing power - PCWorld [Last Updated On: May 18th, 2017] [Originally Added On: May 18th, 2017]
- IBM's Newest Quantum Computing Processors Have Triple the Qubits of Their Last - Futurism [Last Updated On: May 19th, 2017] [Originally Added On: May 19th, 2017]
- IBM scientists demonstrate ballistic nanowire connections, a potential future key component for quantum computing - Phys.Org [Last Updated On: May 19th, 2017] [Originally Added On: May 19th, 2017]
- The route to high-speed quantum computing is paved with error | Ars ... - Ars Technica UK [Last Updated On: May 20th, 2017] [Originally Added On: May 20th, 2017]
- Researchers push forward quantum computing research - The ... - Economic Times [Last Updated On: May 22nd, 2017] [Originally Added On: May 22nd, 2017]
- US playing catch-up in quantum computing - The Register-Guard [Last Updated On: May 22nd, 2017] [Originally Added On: May 22nd, 2017]
- IBM Q Offers Quantum Computing as a Service The Merkle - The Merkle [Last Updated On: May 25th, 2017] [Originally Added On: May 25th, 2017]
- Graphene Just Brought Us One Step Closer to Practical Quantum Computers - Futurism [Last Updated On: May 25th, 2017] [Originally Added On: May 25th, 2017]
- How quantum computing increases cybersecurity risks | Network ... - Network World [Last Updated On: May 25th, 2017] [Originally Added On: May 25th, 2017]
- Is the US falling behind in the race for quantum computing? - AroundtheO [Last Updated On: May 25th, 2017] [Originally Added On: May 25th, 2017]
- Artificial intelligence and quantum computing aid cyber crime fight - Financial Times [Last Updated On: May 25th, 2017] [Originally Added On: May 25th, 2017]
- Google Plans to Demonstrate the Supremacy of Quantum ... - IEEE Spectrum [Last Updated On: May 25th, 2017] [Originally Added On: May 25th, 2017]
- Top 5: Things to know about quantum computers - TechRepublic [Last Updated On: May 25th, 2017] [Originally Added On: May 25th, 2017]
- AI and Quantum Computers Are Our Best Weapons Against Cyber Criminals - Futurism [Last Updated On: June 1st, 2017] [Originally Added On: June 1st, 2017]
- Scientists claim to have invented the world's first quantum-proof ... - ScienceAlert [Last Updated On: June 1st, 2017] [Originally Added On: June 1st, 2017]
- Microsoft, Purdue Tackle Topological Quantum Computer - HPCwire - HPCwire (blog) [Last Updated On: June 1st, 2017] [Originally Added On: June 1st, 2017]
- MIT Just Unveiled A Technique to Mass Produce Quantum Computers - Futurism [Last Updated On: June 1st, 2017] [Originally Added On: June 1st, 2017]
- Here's How We Can Achieve Mass-Produced Quantum Computers - ScienceAlert [Last Updated On: June 1st, 2017] [Originally Added On: June 1st, 2017]
- Research collaborative pursues advanced quantum computing - Phys.Org [Last Updated On: June 1st, 2017] [Originally Added On: June 1st, 2017]
- Telstra just wants a quantum computer to offer as-a-service - ZDNet [Last Updated On: June 1st, 2017] [Originally Added On: June 1st, 2017]
- D-Wave partners with U of T to move quantum computing along - Financial Post [Last Updated On: June 2nd, 2017] [Originally Added On: June 2nd, 2017]
- Doped Diamonds Push Practical Quantum Computing Closer to Reality - Motherboard [Last Updated On: June 3rd, 2017] [Originally Added On: June 3rd, 2017]
- Team develops first blockchain that can't be hacked by quantum computer - Siliconrepublic.com [Last Updated On: June 3rd, 2017] [Originally Added On: June 3rd, 2017]
- Are Enterprises Ready to Take a Quantum Leap? - IT Business Edge [Last Updated On: June 13th, 2017] [Originally Added On: June 13th, 2017]
- Scientists May Have Found a Way to Combat Quantum Computer Blockchain Hacking - Futurism [Last Updated On: June 13th, 2017] [Originally Added On: June 13th, 2017]
- Microsoft and Purdue work on scalable topological quantum computer - Next Big Future [Last Updated On: June 13th, 2017] [Originally Added On: June 13th, 2017]
- From the Abacus to Supercomputers to Quantum Computers - Duke Today [Last Updated On: June 13th, 2017] [Originally Added On: June 13th, 2017]
- Quantum Computers Will Analyze Every Financial Model at Once - Singularity Hub [Last Updated On: June 13th, 2017] [Originally Added On: June 13th, 2017]
- Quantum Computing Technologies markets will reach $10.7 billion by 2024 - PR Newswire (press release) [Last Updated On: June 14th, 2017] [Originally Added On: June 14th, 2017]
- KPN CISO details Quantum computing attack dangers - Mobile World Live [Last Updated On: June 16th, 2017] [Originally Added On: June 16th, 2017]
- Get ahead in quantum computing AND attract Goldman Sachs - eFinancialCareers [Last Updated On: June 16th, 2017] [Originally Added On: June 16th, 2017]
- Toward optical quantum computing - MIT News [Last Updated On: June 17th, 2017] [Originally Added On: June 17th, 2017]
- Quantum Machine Learning Computer Hybrids at the Center of New Start-Ups - TrendinTech [Last Updated On: June 20th, 2017] [Originally Added On: June 20th, 2017]
- Israel Enters Quantum Computer Race, Placing Encryption at Ever-Greater Risk - Sputnik International [Last Updated On: June 20th, 2017] [Originally Added On: June 20th, 2017]
- Prototype device enables photon-photon interactions at room ... - Phys.Org [Last Updated On: June 20th, 2017] [Originally Added On: June 20th, 2017]
- The Quantum Computer Factory That's Taking on Google and IBM - WIRED [Last Updated On: June 20th, 2017] [Originally Added On: June 20th, 2017]
- 6 Things Quantum Computers Will Be Incredibly Useful For - Singularity Hub [Last Updated On: July 1st, 2017] [Originally Added On: July 1st, 2017]
- Volkswagen buys D-Wave quantum computers which sell for $15 million each - Robotics and Automation News (press release) (registration) [Last Updated On: July 2nd, 2017] [Originally Added On: July 2nd, 2017]