Imagine if years ago you got into quantum computing stocks and made loads of money from companies that are heavily invested in AI and quantum technology. You’d be sitting pretty!
This doesn’t mean you missed the boat, however. This rise of quantum technology has confirmed that the technology has real world utility and is being adopted worldwide.
The National Quantum Initiative Act includes government spending to speed up the study and growth of quantum physics. The Department of Energy also set aside $24 million for quantum network testing.
So the government is already backing it. In fact, the U.S. and Germany have agreed to work together on the quantum computer projects coming in the future. But we are still very early in this game.
So, which quantum computing stocks have good potential in the long-term? For some, “long-term” means boring but it’s very exciting to me. It means an opportunity to ride a proven concept from a very early stage. This means more reliable long-term profits if things pan out.
In this article, I’ll identify three “boring” quantum computing stocks that could make investors very happy.
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) is one of maybe three companies that seems to run everything online. YouTube has 4.9 billion active users, and Google has roughly 92% of the search industry all to itself.
With this market share head start, GOOG already established itself as a big player in quantum computing. Using quantum technology, Alphabet collaborates with JP Morgan Chase (NYSE: JPM) for financial service optimization, Airbus (OTCMKTS:EADSY) for aerospace, and Volkswagen (OTCMKTS:VWAGY) for automotive improvements.
In 2019, New Scientist announced Google had reached quantum supremacy. But in July 2024, new qubit computers smashed that record by a factor of 100, using 30,000 times less power.
GOOG’s quantum computing plans include heavy research and development into qubits. This includes qubit teleportation using the 70-qubit quantum devices.
Additionally, the Xprize Foundation and the GESDA are collaborating with GOOG, holding a $5 million contest to accelerate quantum computations that addresses global challenges.
With major projects and heavy investment, expect GOOG to use its market share to grow alongside quantum computing in the coming years.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) became the second most valuable company in the world after $3 trillion of growth. They posted record revenue of $26 billion which was up 262% from a year ago.
A lot of the revenue they’re generating is based on their cloud services and a lot of other things that they do. So they’re not pigeon-holed as a chip manufacturer.
When you start looking at AI oriented processors, Nvidia is making waves in the quantum computing field, establishing their reputation in the industry, including the use of its open-source Cuda-Q platform.
Nvidia has sped up the work of quantum computing and the number of national supercomputer centers in the world. This includes Germany, Japan, and Poland, where they are making supercomputers. The expectation is that these countries are where quantum computing will come into phase.
Nvidia worked with Rolls-Royce and Classiq to make a quantum computing breakthrough that helps jet engines be designed and run more efficiently.
FormFactor (FORM)
FormFactor (NASDAQ:FORM) is much less known than Alphabet or Nvidia, but deeply immersed in quantum computing. FORM is a quantitative engineering company with a variety of cryogenic tests and measurement options.
They paired up with Tabor Electronics to develop the Echo 5Q integrated 5 qubit quantum computer. So they have the quantum computers already built, developed, and they’re already using it.
The program gives scientists and engineers high quality physical qubits for research and development. This means there will be a lot more breakthroughs ahead.
In Q1 2024, FORM reported $168 million which was up slightly over the previous quarter. More impressively, the Q1 net income was $21.8 million or 28 cents per share, beating the $1.3 million last year. So being at almost at $22 million this year is a huge growth.
In Aug. 2024, FORM took a massive drop in price. Caution is recommended when looking for an entry point. Make sure the dust has settled; don’t try to catch a falling knife. Remember these are long-term plays.
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.
