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The 3 Most Promising Quantum Computing Stocks to Buy in May 2023


  • Check out these three leading quantum computing stock opportunities in May.
  • IonQ (IONQ): The former SPAC has bounced back after a rocky 2022.
  • Honeywell (HON): The industrial giant has quietly assembled a leading position in quantum computing.
  • Alphabet (GOOGL, GOOG): Alphabet set off the land rush in the field when it declared quantum supremacy in 2019.
quantum computing stock - The 3 Most Promising Quantum Computing Stocks to Buy in May 2023

Source: Shutterstock

Quantum computing aims to reimagine the future of advanced calculations. As with any technology that has the potential to make science fiction into reality, investors are looking for the most promising quantum computing stocks to buy. Historically, computing power has grown at a predictable rate largely constrained by Moore’s Law. This is the observation that as the number of transistors on a semiconductor chip tends to double every two years, the cost of computing drops by half. This has long governed the pace of innovation in the computing industry.

However, we’re hitting the physical limit regarding the size of fabrication technologies. To deliver further exponential gains, a new computing technique will be needed. Enter quantum computing. According to a fact sheet on the technology from Microsoft (NASDAQ:MSFT), “Quantum computers harness the unique behavior of quantum physics … and apply it to computing.”

The downturn in tech stocks over the past 18 months has included a downturn in quantum computing stock fortunes as well. However, things may be turning around as sentiment picks back up. As such, it’s a great time to look at these quantum computing stock winners for May 2023.


A concept image of a processor representing quantum computing. IONQ Stock
Source: Amin Van / Shutterstock.com

IonQ (NYSE:IONQ) is the most well-known independent quantum computing outfit out there today. The firm has been in business for many years, assembling an unmatched collection of patents, Nobel prize-winning scientists and R&D platform.

IonQ came public via a special purpose acquisition company and ran into several of the problems common to unproven tech companies in recent years. That included a brutal short seller report which took major shots at IonQ’s technology.

However, it appears that IONQ stock has passed through the worst of the storm, with shares more than doubling off their worst levels. The company has a large cash balance, giving it over 6 years worth of runway to keep growing its business before needing to raise more capital.

IonQ has minimal revenues today, and even its proponents admit the company is likely years away from achieving a major breakthrough in revenues and profitability. But the company has some of the brightest minds in the field and has a reasonable shot at being one of the ultimate winners in the quantum computing race.

Honeywell (HON)

A concept image showing a quantum computer with a matrix background; quantum computing. Quantum Computing
Source: Shutterstock

The issue with IonQ and other pureplay quantum computing stock picks for May is that they are a high-risk venture. The technology is at an early stage and it’s hard to forecast the total addressable market with any clarity at this point.

For investors wanting more balanced risk and reward, it could make sense to put money into established companies that are taking steps in quantum computingHoneywell (NYSE:HON) is one such leading example.

Honeywell is a well-known industrial company, but it has been a pioneer in quantum computing as well. Indeed, it has been active in the space for more than a decade, seeing it as a nice add-on to its industrial software businesses. Honeywell’s quantum computing division merged with Cambridge Quantum to form Quantinuum which claims it’s the world’s largest integrated quantum computing company. It aims to address fields such as chemicals, finance, aerospace, defense and pharmaceuticals among others.

Alphabet (GOOGL, GOOG)

Closeup logo of Google.com website on an iPhone on wooden table. GOOG stock and Google layoffs
Source: Koshiro K / Shutterstock.com

Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) is another good choice for investors wanting diversified exposure to quantum computing. Admittedly, quantum computing is far from the only iron in the fire at Alphabet.

The company, best known for their search engine Google, has made futuristic investments in a wide variety of ground-breaking ideas. One of these is quantum computing, where in 2019 they announced that they had achieved quantum supremacy.

It will be a long road from achieving quantum calculations in a lab to real world applications. However, Alphabet is on the path to commercializing its efforts. This includes forming a standalone company for Alphabet’s quantum ventures, potentially setting the stage for another quantum computing stock opportunity in the future, generating more shareholder value for Alphabet stock owners.

On the date of publication, Ian Bezek 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.

Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.

Article printed from InvestorPlace Media, https://investorplace.com/2023/05/the-3-most-promising-quantum-computing-stocks-to-buy-in-may-2023/.

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