Quantum computing will be a game-changer and could create big opportunities for some of the top quantum computing stocks.
In fact, according to McKinsey, it could take computing and the ability to solve complex problems quickly to a “whole new level.” They also believe it could create a $1.3 trillion opportunity by the time 2035 rolls around.
Quantum computing is a huge leap forward because “complex problems that currently take the most powerful supercomputer several years could potentially be solved in seconds,” said Charlie Campbell for Time. This could open “hitherto unfathomable frontiers in mathematics and science, helping to solve existential challenges like climate change and food security.”
It could help speed up new drug treatment discoveries. It may even help speed up financing and data speed, assist with climate change issues, cybersecurity and other mind-boggling complex issues faster than a regular computer.
Even more impressive, the technology is already being referred to as “a revolution for humanity bigger than fire, bigger than the wheel,” according to Haim Israel, Head of Thematic Investing Research at Bank of America.
All of which could fuel big upside for quantum computing stocks.
IonQ (IONQ)
Consolidating at $7.87, I’d like to see shares of IonQ (NYSE:IONQ) initially run back to $10 a share.
For one, earnings have been ok. The company just posted a first-quarter loss of 19 cents, which beat expectations by six cents. Revenue of $7.6 million — up 77.2% year over year — beat by $600,000. Also, for the full year, revenue is expected to be between $37 million and $41 million, with estimates calling for $39.99 million.
Two, the company is quickly gaining more U.S. defense, technology and university clients. It also expects to increase its computing power from AQ 36 (a tool used to show how useful a quantum computer is at solving real problems) to AQ 64 by 2025.
Three, what’s really enticing about IONQ is that we’re still in the early stages of growth. When quantum computing does become far bigger than it is now, it could propel this $1.74 billion company to higher highs.
D-Wave Quantum (QBTS)
Another one of the top quantum computing stocks to buy is D-Wave Quantum (NYSE:QBTS), which claims to be the world’s first commercial supplier of quantum computers.
At the moment, QBTS is sitting at double-bottom support at $1.16. From here, I’d like to see it initially run to about $1.70. Then, once the quantum computing story really starts to heat up, I’d like to see the stock run back to $3.20 from its current price.
Helping, QBTS has a consensus “strong buy” rating from four analysts, with an average price target of $3. And, the stock is set to join the Russell 3000 Index on July 1, which will give it even more exposure to investors. In addition, not long ago, analysts at Needham initiated coverage of QBTS with a “buy” rating and a price target of $2.50.
Even better, the company just extended its partnership with Aramco to help solve complex geophysical optimization issues with quantum technologies. All of which should draw in a good number of eyeballs to the QBTS stock.
Defiance Quantum ETF (QTUM)
One of the best ways to diversify your portfolio and spend less is with an exchange-traded fund (ETF) like the Defiance Quantum ETF (NYSEARCA:QTUM).
For one, 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.
Two, some of 71 holdings include MicroStrategy (NASDAQ:MSTR), Nvidia (NASDAQ:NVDA), Micron (NASDAQ:MU), Coherent (NYSE:COHR), Applied Materials (NASDAQ:AMAT) and Rigetti Computing (NASDAQ:RGTI).
Even better, I can gain access to all 71 names for less than $65 with the ETF.
Three, the ETF has been explosive. Since bottoming out around $55, it’s now up to $63.37. From that current price, I’d like to see the QTUM ETF race to $70 a share, near term.
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.
