Quantum computing is the new frontier of technology, which makes getting familiar with quantum computing stocks worth your while.
Supercomputers that are capable of crunching massive amounts of data at lightning-fast speeds are fast becoming a reality as companies around the world break new ground in the area.
First conceived in the 1980s, quantum computing was largely thought of as science fiction until the last decade. Now, the quantum computer market is forecast to grow from $320 million last year (2020) to $830 million by 2024, according to Hyperion Research.
Analysts claim that quantum computing will eventually change the world as we know it, ushering in new eras in medicine, telecommunications and space exploration.
As companies race to develop and commercialize quantum computing technologies, we look at three leading quantum computing stocks to buy based on their potential to change the world.
Quantum Computing Stocks to Buy: Nvidia (NVDA)
Nvidia is a leader in quantum computing, and its position is about to be strengthened once its $54 billion acquisition of British microchip designer Arm Holdings is approved by regulators around the world.
Arm, which is owned by Japan’s SoftBank Group, is a major player in global semiconductors that are used in ultrafast quantum computers, among other applications. Should Nvidia gain control of Arm, the company’s prowess in quantum computing will be magnified.
Beyond the Arm acquisition, Nvidia has collaborated with Caltech University to develop quantum circuits that power the world’s supercomputers. The company is even in the process of developing its own supercomputers that are used by governments around the world, including the U.S. Department of Energy.
Nvidia’s aspirations go well beyond creating graphics chips for video game consoles, and the company’s stock is usually a reliable bet. Year-to-date, NVDA stock is up 68%. In the past five years, the share price has climbed nearly 1,200%.
Alphabet (GOOGL)
The parent company of Google might be best known for its online advertising business, but it is also a major player in the quantum computing space.
Alphabet has said that Google plans to spend several billion dollars to build its own quantum computer by 2029 that can perform large-scale business and scientific calculations.
To aid its effort, the Silicon Valley stalwart recently expanded its California campus to open a new center focused exclusively on quantum computing and artificial intelligence (AI).
Google also plans to offer its quantum computing services over the cloud. Google’s leadership has said that they see several uses for quantum computing technology, including building more energy-efficient batteries, making fertilizer that emits less carbon dioxide and enhancing machine learning.
To accomplish all these ambitions, Google says it needs to build a one million qubit machine capable of performing mind-boggling calculations at extreme speeds without errors. Google has its work cut out for it considering that current quantum computers are capable of processing fewer than 100 qubits.
GOOGL stock has been a top performer this year having risen nearly 65% year-to-date and nearly 95% over the past 12 months.
Quantum Computing Stocks to Buy: Qualcomm (QCOM)
Qualcomm has its hat in the quantum computing ring, too. Specifically, the company is a leader in what is known as “quantum artificial intelligence” or “quantum AI.”
In Amsterdam, the Netherlands, Qualcomm says it is applying quantum field theory to deep-learning AI. Right now, quantum computing and artificial intelligence operate independently of each other. Combining the two could be a game-changer in terms of moving supercomputers forward, say analysts.
Besides quantum computing, Qualcomm is a leader when it comes to the microchips that power today’s vehicles and is a leader in fifth-generation (5G) internet that is being adopted around the world.
The company’s forays into quantum computing aren’t a huge part of its business right now but are likely to become more prominent in coming years.
QCOM stock has been a bit of a laggard this year, but analysts remain bullish on the company. The median price target on the stock is $180. QCOM stock is trading at about $134 today.
Disclosure: On the date of publication, Joel Baglole 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.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
