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If you thought the artificial intelligence boom was explosive, keep an eye on quantum computing.

According to Haim Israel, Head of Global Thematic Investing Research at Bank of America, we could soon see a revolution for humanity bigger than fire, bigger than the wheel, as quoted by Barrons. This is creating a massive opportunity for quantum computing stocks.

Whereas a supercomputer could take several years to compute, quantum computing can solve in a matter of minutes. In 2019, Googles quantum computer once performed a calculation in 200 seconds. It would have taken the worlds most powerful computer about 10,000 years to complete this computation.

Another example is drug development.

It takes an average of 15 years and tens of billions of dollars because only one out of 10,000 molecules becomes a drug. Quantum computing can do those calculations probably in a matter of minutes. I cant even think about an industry that wont be revolutionized, according to Haim Israel in a Barrons article.

Or, how about this? A team of scientists in Australia recently used quantum computing to slow down a molecular interaction 100 billion times slower than normal. In doing so, they slowed down chemical dynamics from femtoseconds (a quadrillionth of a second) to milliseconds. At those speeds, we could be looking at massive disruption in nearly every industry in the world.

These facts and stats could mean incredible profits for the following quantum computing stocks.

Source: Amin Van / Shutterstock.com

The last time I mentioned IonQ (NYSE:IONQ), the pure-play stock traded at just $4.56 on March 13. Today, its up to $19.68 and could see higher highs.

All thanks to a booming quantum computing market and solid earnings growth.

While the company posted a loss of 22 cents a share, missing estimates by 14 cents, revenue more than doubled to $5.52 million. That number beat estimates by $1.16 million. Also, Q2 bookings were a record $28 million, which now brings first-half 2023 bookings to more than $32 million.

In addition, the company increased its 2023 bookings to a new range of $45 million to $55 million. Then it raised full-year revenue guidance to $18.9 million to $19.3 million from a prior range of $18.8 million to $19.2 million. Analysts like the stock, with Morgan Stanley raising its price target to $16 from $7. Even Benchmarkraised its target price to $20 from $17.

Source: Shutterstock

Also, Rigetti Computing (NASDAQ:RGTI) has been equally as explosive. Since May, the company developing quantum integrated circuits for quantum computers popped from about 36 cents to a high of $3.43. While it has since pulled back to $2.03, recent weakness could be seen as an opportunity.

From current prices, I believe RGTI could double, if not triple, to higher highs. Helping, Benchmark analysts just upgraded RGTI to a buy rating, with a price target of $44, all thanks to earnings. In its second quarter, the company posted Q2 EPS of 13 cents, which beat estimates by four cents. Revenue, up 56% year over year (YOY) to $3.33 million, beat by $0.58 million.

Source: Shutterstock

Or, if you want to diversify among top quantum computing names at low cost, try an ETF, such as Defiance Quantum ETF (NYSEARCA:QTUM).

With an expense ratio of 0.40%, the fund provides exposure to cloud computing, quantum computing, artificial intelligence, and machine learning stocks. Better, the ETF has been on fire this year.Since January, the ETF ran from about $39 a share to a recent high of $50.15.

From there, Id like to see QTUM again challenge prior resistance around $53.55.Some top holdings include Ionq, Rigetti Computing ,Splunk (NASDAQ:SPLK), Intel (NASDAQ:INTC), Nvidia (NASDAQ:NVDA), and Applied Materials (NASDAQ:AMAT) to name a few of its 71 holdings.

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

Excerpt from:
The 3 Most Undervalued Quantum Computing Stocks to Buy in September 2023 - InvestorPlace