Quantum AI stocks is set to redefine computing over the next few years. This field of computing develops computers by using principles of quantum mechanics to process data. The benefits of quantum AI include solving complex problems at speeds far surpassing the most advanced conventional computers. This speed allows users to optimizing large systems, enhancing cryptography and simulating quantum systems for advances in science and drug discovery.

Unlike conventional computers which use bits as the smallest unit of data, quantum computers use quantum bits called cubits. Additionally, cubits can exist in multiple states simultaneously due to superposition. And, those cubits can interact with each other.

The following stocks have a running start in this revolutionary technology. These picks are based on their performance so far and their positioning for the future.

IONQ (IONQ)

Leader IONQ (NYSE:IONQ) became the first publicly traded pure-play quantum computing company in October 2021. It specializes in trapped-ion quantum computers, known for high fidelity and scalability. It has already partnered with Pharma giants like AbbVie (NYSE:ABBV), Bionano Genomics (NASDAQ:BNGO) and Amgen (NASDAQ:AMGN).

IONQ’s stock price is only $8.95. Its financial performance for the first quarter of 2024 reported a significant increase in revenue. It rose to $7.6 million from $4.3 million in the same period last year.

However, the company continues to incur substantial operating costs with $60.5 million for Q1 of 2024. This highlights IONQ’s current phase of heavy investment in research and development, which reached $32.4 million in the quarter.

Thus, IONQ’s long-term success depends on ability to transition from heavy investment to profitability as it capitalizes on its technological advancements.

Rigetti (RGTI)

Operating cloud-based quantum computers since 2017, Rigetti (NASDAQ:RGTI) serves global enterprises and governments.

Also, the company released its own quantum processors. It integrates them with classical computers to create hybrid quantum-classical computing solutions.

RGTI reported total revenues of just over $3 million for Q1 of 2024, showing a proven year-over-year (YOY) growth of 38.6%. Their cash and cash equivalents increased to $35.1 million, up from $21.4 million at the end of 2023. This indicates improved liquidity.

RGTI is actively advancing its technological capabilities. They launched the Ankaa 2 Quantum processor which boasts a 2.5x improvement in performance. And, the Novera GPU partner program is yet another development aimed at boosting the company’s market position.

Finally, RGTI has secured several strategic partnerships and government contracts. These include a project with Oxford Instruments to launch a quantum computing system in the U.K. There are also collaborations with Phasecraft, Standard Chartered and the University of Edinburgh.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) is a significant player in the semiconductor industry, consistently delivering innovative products. AMD’s strategic focus on high performance computing and graphics technologies has kept it competitive against giants like Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA).

Recent financial reports indicate strong revenue growth for Q1 of 2024, reporting revenues of $5.3 billion, a 9% YOY increase. This growth has been driven primarily by increased demand for its Ryzen and EPYC processors. These have been well received in both consumer and enterprise markets.

AMD continues to push the envelope with its Zen 5 architecture. It is expected to power its next generation of Ryzen and EPYC processors. These advancements are crucial as AMD seeks to capture more market share from Intel in the CPU space and Nvidia.

AMD’s strategic acquisitions have bolstered its technological capabilities and market reach. The 2022 acquisition of Xilinx expanded AMD’s portfolio into adaptive computing. Thus, it provides a foothold in this exciting growing field of AI and machine learning.

On the date of publication, Sam Farnham 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.