Quantum computing happens to be one of the most promising technologies of the 21st century. The tech has investors searching for the best quantum computing stocks. It has the potential to solve complex problems that normally slow down classical computers, such as optimization, cryptography, machine learning and simulation.
However, quantum computing is still in its infancy and faces many challenges, such as scalability, error correction and cost. Only a few companies have managed to build and operate quantum computers, and even fewer have made them available to customers and developers. In this article, we will look at three quantum computing stocks that have the possibility of getting investors incredibly wealthy this year.
D-Wave Quantum (QBTS)
D-Wave Quantum (NYSE:QBTS) is the oldest and most established quantum computing company in the market. The company is the pioneer of quantum annealing, a computing technique used to find the optimal solution for a given problem. D-Wave Quantum has built several quantum annealers with more than 5,000 qubits, which allows greater potential for commercial applications.
D-Wave Quantum offers its quantum annealers and software tools through its own cloud platform, called Leap. QBTS also offers a suite of developer tools, called Ocean, which helps users design, develop and deploy quantum applications. The quantum computing company has a diverse customer base, including government agencies as well as corporations.
From a financial perspective, D-Wave Quantum is developing in a positive direction. The company generated $7.2 million in revenue last year, increasing 14% year-over-year (YoY). Wall Street analysts expect D-Wave to generate more than $12 million in revenue at the end of 2023, which would represent a 70% YoY increase from the prior period. The stock had appreciated more than 100% year-to-date (YTD). This could be a chance for investors to buy this stock at a lower price, as D-Wave Quantum has a strong competitive advantage in the quantum computing market.
IonQ (IONQ)
IonQ (NYSE:IONQ) has earned another spot on my quantum computing lists. The company is the first pure-play publicly traded quantum computing stock, and has become the leader in trapped-ion quantum computing. This subsect of quantum computing uses electrically charged atoms to store and manipulate qubits.
To date, the company claims to have built the world’s most powerful quantum computer which has achieved a quantum capacity 32 qubits. IonQ plans to launch modular quantum computers by the end of 2023. And, a next-gen quantum computer with 64 qubits by 2025. To be able to establish its product in the broader market, IonQ has made its quantum computers accessible to customers and developers through large cloud platforms.
IonQ is still in the pre-revenue stage, but analysts expect it to generate $19 million in revenue in 2023 and $88 million by 2026. It also expects to achieve positive EBITDA by 2025. IonQ’s shares are currently up over 350% YTD.
Taiwan Semiconductor Manufacturing Co. (TSM)
Taiwan Semiconductor Manufacturing Company (NYSE:TSM), or TSMC, is the world’s largest contract chipmaker, producing chips for many leading technology companies. TSMC happens to also be one of the most advanced semiconductor companies in the world. Even though TSMC is technically a semiconductor manufacturer, its potential to influence the world of quantum computing should not be understated.
TSMC is indeed also involved in quantum computing research and development, although not as directly as IonQ or D-Wave. The company has collaborated with several academic institutions and research organizations to explore quantum computing applications and technologies. Overall, TSMC has been benefiting from the strong demand for chips across various sectors.
Ultimately, TSMC is a reliable stock for investors who want exposure to the quantum computing industry without sacrificing quality or growth. TSMC has a dominant position in the semiconductor industry, a loyal customer base and a continuous innovation culture. TSMC could definitely leverage its expertise and resources to become a key player in the quantum industry in the future.
On the date of publication, Tyrik Torres 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.
