Sometimes, what appears to be the most boring, can be the most rewarding. Look at the assortment of quantum computing stocks, which rely on quantum computing technology to solve complex calculations at ultra-high speeds.
Just last year, for example, a team of Australian researchers proved that near-error-free quantum computing is possible, which could help the world solve extremely complex problems in just seconds. “When the errors are so rare, it becomes possible to detect them and correct them when they occur. This shows that it is possible to build quantum computers that have enough scale, and enough power, to handle meaningful computation,” they found.
That may sound boring. But it’s also proven itself to be extremely profitable. Here are three quantum computing stocks I think are worth buying to play this trend.
|QTUM||Defiance Quantum ETF||$48.63|
IonQ Inc. (IONQ)
The last time I mentioned quantum computing stocks to buy, IonQ (NYSE:IONQ) traded at $4.56 on March 13. Today, it’s up to $9.84 and still running. For one, it’s working with Amazon (NASDAQ:AMZN) to bring the 25 qubits IonQ Aria to the Amazon Braket, or the Amazon Web Service for quantum computing. This means Amazon can now work on developing software and services on IonQ computers more easily than before.
Also, in the first quarter of 2023, the company saw revenue of $4.3 million, which was well above the $2 million posted year over year. It also saw $4.1 million in new bookings in the quarter. While it did post a loss of $27.3 million, it does have $525.5 million in cash and investments to keep it afloat.
Defiance Quantum ETF (QTUM)
On March 13, I also mentioned an opportunity in quantum computing stocks to buy, the Defiance Quantum ETF (NYSEARCA:QTUM). At the time, it traded at $44.30. Now, it’s up to nearly $49 per share, and could see higher highs. With an expense ratio of 0.4%, the ETF provides exposure to companies at the forefront of cloud computing, quantum computing, machine learning, and other transformative computing technologies, at a relatively low cost.
Some of its top holdings include Wipro Ltd. (NYSE:WIT), Accenture PLC (NYSE:ACN), IBM(NYSE:IBM), Micron Technology (NASDAQ:MU), Nokia Corp. (NYSE:NOK), and ON Semiconductor Corp. (NASDAQ:ON). If you were to buy each of these stocks individually, it would cost far more than the $49 price tag on the ETF.
Nvidia (NASDAQ:NVDA) was another top pick on March 13. At the time, the tech stock traded at just $229.65. Today, it’s up to about $400 a share and could see higher highs. This is all thanks to hype around artificial intelligence, explosive earnings, gaming, and quantum computing to name a few catalyst. Impressively, when it comes to quantum computing, NVDA may be a leader here, too.
Remember, NVDA released cuQuantum, a software development kit (SDK) of optimized libraries and tools for accelerating quantum computing workflows. Also, with NVIDIA Tensor Core GPUs, developers can use cuQuantum to speed up quantum circuit simulations based on state vector and tensor network methods by orders of magnitude, as noted by the company. And as noted by InvestorPlace contributor Joel Baglole, “Without Nvidia’s technology, much of the improvements of quantum computing, AI, and other areas of science wouldn’t be possible.”
On the date of publication, Ian Cooper did not have (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.com Publishing Guidelines.