Quantum computing will open up a new realm of possibilities.
Right now, many potential discoveries are beyond our reach. This is primarily due to the limitations of processing power, such as modeling complex systems in health, finance, and science. We’ve reached a limit to the degree of speed and power of our processing chips due to the physical limitations of space. And these quantum computing stocks buy hope to change that.
Notably, in a commercial setting, quantum computing remains largely in the realm of experimentation. Yet functional quantum systems do exist. Not only will the development of such technology have wide implications for society, but it will also open up security risks, particularly for encryption. Still, the benefits may far outweigh the risks.
So let’s examine the three best quantum computing stocks to buy as we move closer to next year.
FormFactor (FORM)
FormFactor (NASDAQ:FORM) is a semiconductor company that has a significant presence in the quantum computing industry. FORM specializes in providing testing and measurement solutions, primarily during the stage when chips are still on a wafer before packaging.
FormFactor operates through two main segments, Probe Cards and Systems. The former interfaces are used for testing chip functions while they are still on the wafer. The Systems segment performs similar tasks.
The company has shown impressive financial performance with revenues of $167.4 million exceeding their outlook range. Also, they hold recognition as one of the six EPIC Outstanding Suppliers to Intel (NASDAQ:INTC), a major player in the tech industry. With Intel’s recent release of a quantum computing chip expected to advance spin qubit research, valued supplier FormFactor is well-positioned for forward growth.
This makes it one of those quantum computing stocks to buy for the immediate future.
IonQ (IONQ)
IonQ (NYSE:IONQ) is experiencing a significant stock price increase this year, moving from under $4 to above $14. The company’s quantum hardware is unique because it’s the only one available on all leading cloud platforms.
In May, Amazon Web Services (AWS) added support for IonQ’s Aria to its quantum computing service, Braket, which already featured another IonQ device called Harmony. This addition allows users to compare both IonQ products through AWS. Given that IonQ debuted on Azure Quantum and later on AWS, it’s evident that major cloud players see its value, making it a promising stock for the future.
More reasons to consider buying IONQ stock are namely due to its partnerships. In particular, it expanded its collaboration with the Air Force Research Lab (AFRL) to deploy two quantum computing systems for quantum networking research. Following a previous agreement with AFRL, this move aligns with the U.S. government’s increased focus on quantum technology development. IonQ’s other recent achievements include a record $28 million in bookings for Q2 2023 and a partnership with QuantumBasel in Europe.
With these factors considered, it’s surely one of those quantum computing stocks to buy for next year and beyond.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) is a tech giant known for its powerful GPUs. While it’s not exclusively a quantum computing company, it has made significant strides in the field.
The company has introduced CuQuantum, a software development kit for quantum computing workflows. Additionally, its DGX Quantum computing system allows researchers to develop quantum computing applications using Nvidia GPUs. It’s true that Nvidia GPUs are among the most powerful AI chips available. This reinforces the belief that advancements in quantum computing are likely to be attributed to Nvidia, making it a strong contender in the space.
Among all big tech stocks, NVDA is a clear favorite, with many irons in the fire, from quantum to blockchain to generative AI. Although it may still trade at a rich valuation, its long-term potential for industry disruption is evident.
Over the past decade, Nvidia’s stock has grown by 11,400%. Also, it’s exploring segments that are set to explode in value. For example, NVDA’s automotive segment, targeting self-driving software, could tap into a projected $300-$400 billion market by 2035. In summary, it’s a clear quantum computing stocks to buy today for future gains.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
