The race for quantum computing dominance is on. According to SDXCentral.com, the U.S. and China are neck and neck at the moment. The U.S. has already committed $3 billion in funding for quantum computing, with another $12 billion coming from the National Quantum Computing Initiative. China committed about $15 billion over the next five years. All of which is a solid catalyst for top quantum computing stocks.
Even better, the market for quantum computing could explode from about $928.8 million in 2024 to more than $6.5 billion by 2030, as noted by Fortune Business Insights.
According to Haim Israel, Head of Global Thematic Investing Research at Bank of America says quantum computing is a game changer. In fact, “By the end of this decade, the amount of calculations that we can make will be more than the atoms in the visible universe. This could be a revolution for humanity bigger than fire, bigger than the wheel,” he said, quoted by Barron’s.
It’s that potential that could create massive opportunity for quantum computing stocks, like:
Top Quantum Computing Stocks: IonQ (IONQ)
After finding strong support at $7, shares of IonQ (NYSE:IONQ) are starting to pivot higher. Last trading at $9.28, I’d like to see it retest $11.50 near term.
Earnings haven’t been too shabby for quantum computing stocks, like IONQ either. For the full-year 2023, for example, the company saw revenue of $22 million and bookings of $65.1 million, which was growth of 98% and 166%, respectively.
For the full year 2024, it expects revenues to jump 68.2% to 86.4% to a range of $37 million to $41 million year over year.
Helping, analysts at Benchmark reiterated a buy rating on the IONQ stock, with a price target of $16. The firm argued that IONQ surpassed its technological goals and financial expectations, as noted by TipRanks.com.
“The company’s expanding customers, including Airbus, Hyundai Motors, and the United States Air Force Research Laboratory, as well as recent sales in Europe, have sparked a rising interest in system purchases, especially in Europe, fueling optimism for the coming year,” they added.
D-Wave Quantum (QBTS)
After dropping from about $2.42 to $1.27 a share, D-Wave Quantum (NYSE:QBTS) is now consolidating at around $1.41 a share.
From here, I’d like to see it initially retest $2.42 again. Helping, analysts at Needham recently initiated a buy rating on QBTS with a buy rating and a $2.50 price target.
According to the firm, “D-Wave is a pure-play quantum computing company that targets commercial applications with a unique quantum annealing technology. The firm says that unlike peers, D-Wave generated 70% of its 2023 revenue from commercial customers by applying its quantum annealing systems to real-world optimization problems,” as noted by Investing.com.
Benchmark analysts also raised their price target on QBTS to $4 from $2, with a buy rating. The firm says the company’s Advantage 2 is already showing substantial advances in quantum annealing – which refers to technology that makes use of quantum effects to solve optimization problems, as noted on LinkedIn.com.
Defiance Quantum ETF (QTUM)
Or, if you want to diversify with 71 quantum computing-related stocks at a lower cost, there’s the Defiance Quantum ETF (NYSEARCA:QTUM).
With an expense ratio of 0.40%, the QTUM ETF “provides exposure to companies on the forefront of machine learning, quantum computing, cloud computing, and other transformative computing technologies,” according to Defiance ETFs.
Some of its top holdings include MicroStrategy (NASDAQ:MSTR), Nvidia (NASDAQ:NVDA), Micron Technology (NASDAQ:MU), Coherent Corp. (NYSE:COHR), Applied Materials (NASDAQ:AMAT) and Rigetti Computing (NASDAQ:RGTI).
After finding strong support at around $55,06, the QTUM is starting to rebound. Last trading at $59.92, I’d like to see it retest $63 a share near term.
At its current price of $59.92, we can buy 100 shares for just under $6,000. Or, we can buy just one of its holdings without diversifying with 70 other names, such as Nvidia for about $92,140 for just 100 shares. I’d rather have the diversification and the lower cost.
On the date of publication, Ian Cooper did not hold (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.
