Quantum Leap: 3 Computing Stocks on the Brink of a Breakout


  • These leading quantum computing stock picks offer a gateway to a burgeoning multi-billion dollar market.
  • IonQ (IONQ): With more than 50% in sales last year, and expectations of similar results in 2024, IONQ is the most successful pure-play in the quantum computing realm.
  • Sealsq (LAES): A speculative quantum play targeting three of the biggest technologies in AI, quantum computing, and IoT.
  • Defiance Quantum ETF (QTUM): Offers diversified exposure to 71 companies, boasting a 142% five-year return.
Quantum Computing Stock Picks - Quantum Leap: 3 Computing Stocks on the Brink of a Breakout

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It would be foolish to turn a blind eye to the best quantum computing stock picks. Last year, we saw how a revolutionary technology like generative AI led the stock market to record gains. Companies involved directly or indirectly with generative AI saw their stock balloon in a relatively short time span. Given the incredible potential of quantum technology, I feel we could be in for something similar.

Quantum computing can potentially become a multi-billion dollar market within the next few years. With practical applications in everything from computing to energy to consumer and commercial finance, it’s tough to ignore the power of quantum computing.  Moreover, the battle for supremacy in quantum computing is intensifying, with major global powers vying for leadership. The U.S. and China are allocating billions to advancing their respective capabilities in the quantum computing field. Their investments effectively point to the strategic long-term importance of quantum computing and the tremendous upside potential in quantum computing stock picks.

Quantum Computing Stock Picks: IonQ (IONQ)

IONQ logo

IonQ (NYSE:IONQ) develops and sells access to multiple qubit-capacity quantum computers through cloud platforms in the U.S. It is also one of the most successful quantum computing pure-plays, having grown its sales from $2.1 million in 2021 to $22 million last year. Sales jumped more than 80% last year, which led to its stock gaining a market-beating 44%.

In recent months, though, we’ve seen the stock slow down substantially, having shed roughly 26% of its value year-to-date (YTD). However, following another smashing quarterly performance in the first quarter (Q1), its stock is up almost 10% this month. Nevertheless, it still has a lot of ground to cover in matching its 52-week high of $21.60.

As mentioned earlier, the company’s Q1 was another step in the right direction. Its sales jumped $7.6 million, up 77.2% on a year-over-year basis (YOY) while beating estimates by $600,000. Additionally, it anticipates revenue growth between 68.2% and 86.4%, projecting revenues to reach between $37 million and $41 million YOY, ahead of estimates. Additionally, with a sweet $434.4 million in its cash till, it has ample liquidity to push forward with aplomb.

Sealsq (LAES)

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Sealsq (NASDAQ:LAES) is a speculative quantum play that develops and sells quantum-resistant secure microcontrollers and related products such as processors and firmware. These specialized chips are designed to protect data efficiently against potential future threats from quantum computers.

Sealsq ended last year, delivering $30 million in sales, roughly 30% higher on a YOY basis. Moreover, cash and cash equivalents were at $6.9 million, which is rather precarious given its liabilities. Its total liabilities are roughly 4.6 times its total equity, which is concerning, to say the least.

However, it has a few catalysts that could result in even healthier top-line growth ahead. For instance, its WISeSat picosatellite project significantly aims to improve satellite IoT device connectivity. Moreover, we saw its stock price spike briefly when it announced its foray into AI chip development. Hence, its involvement in three of the biggest multi-year trends in the stock market makes it an interesting bet. Also, considering you could swap its shares for a candy bar, it’s unlikely to break the bank anytime soon.

Defiance Quantum ETF (QTUM)

A digital rendering of a circuit board and digital chip in neon colors to illustrate quantum computing
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Defiance Quantum ETF (NYSEARCA:QTUM) is perhaps a clear winner on the list. It’s one of the few, if any, quantum computing stocks that’s been in favor with investors over the past several years. In fact, QTUM stock has gained more than 142% in value over the past five years, blowing past the S&P 500’s 82% gain. Similarly, it has outperformed the S&P 500 across multiple time periods, including last year.

Moreover, its expense ratio of just 0.40% is roughly 17% cheaper than the sector median. On top of that, investing in QTUM comes with a dividend. Though its dividend yield of 0.8% is nothing to write home about, it’s paid dividends for the past five years, outperforming any pure-play quantum computing firm in this regard. Furthermore, it has investments in 71 different companies, including some of the biggest tech players like MicroStrategy (NASDAQ:MSTR), Micron Technology (NASDAQ:MU), Nvidia (NASDAQ:NVDA), Coherent Corp. (NYSE:COHR), among others.

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On the date of publication, Muslim Farooque 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.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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