Quantum computing could emerge as a key technology and investment trend in the decades ahead. Analysts highlight that quantum computers could transform many industries, including finance, pharmaceuticals, energy, agriculture and telecom. Technology companies are in focus for investors and offer great opportunities. Annual average growth is forecast to exceed 40% during the decade, with development gaining pace after 2025. Google, IBM and a host of different startups are hoping to double their quantum computing capacities each year. Here are eight best quantum computing stocks to buy, according to Wall Street analysts.
What is the best quantum computing stock?
Alphabet Inc. (NASDAQ: GOOG, GOOGL): In 2019, Google’s Sycamore quantum computing chips executed a task in 200 seconds that the company claimed would have taken a supercomputer 10,000 years to perform. Since then, the company has been working on this technology. The tech giant aims to create a “useful, error-corrected quantum computer” by 2029. Moreover, Google has plans for multiple uses of this technology which are building more energy-efficient batteries, creating a new process of making fertilizer that emits less carbon dioxide, and speeding up training for machine learning, a branch of artificial intelligence. According to the ongoing development and ambitious plans of the company, Google will be creating a huge name for itself in the field of quantum computing. It is one of the best quantum computing stocks to invest in today.
IBM (NYSE: IBM): IBM is leading the way towards the future of quantum technology. In 2016, it became the first to offer cloud-based quantum computing access, letting virtually anyone access these once-prohibitive resources. IBM Q Network partners include ExxonMobil, Daimler, JP Morgan Chase, Anthem, Delta Airlines, Los Alamos National Laboratory, Oak Ridge National Laboratory, Georgia Tech University, Keio University, Stanford University’s Q-Farm program, and Mitsubishi Chemical among dozens of others. IBM is undoubtedly one of the best cloud computing stocks to invest in today.
Microsoft (NASDAQ: MSFT): Microsoft Quantum, which the company calls "the world's first full-stack, open cloud quantum computing ecosystem," allows developers to build quantum applications and run them on multiple systems. The software giant has various research labs devoted to quantum computing and offers quantum computing services via the cloud on Azure. With the developments accelerating in this sector, Microsoft is one of the hottest quantum computing stocks to buy in 2022.
Nvidia (NASDAQ: NVDA): Interestingly, Nvidia’s approach towards quantum technology is different from others. The company is not planning to build quantum computers, but it intends to use GPU-accelerated platforms for quantum circuit and algorithm development and testing. It has released cuQuantum, a software development kit designed to help software developers build workflows on quantum computing. Nvidia has partnered with Google Quantum AI, IBM and other quantum computing leaders who use Nvidia's cuQuantum software development kit to accelerate their quantum computing work.
IonQ (NYSE: IONQ): Start-up IonQ merged with special purpose acquisition company (SPAC) dMY Technology Group III in 2021 and is building a network of quantum computers accessible via cloud computing. With roots in the University of Maryland, IonQ is one of the few companies directly developing quantum computing systems. Utilizing the power of ionized atoms allows IonQ’s computers to perform longer, more complex calculations with fewer errors than any quantum computer yet built. The company has the backing of well-known investors, including Bill Gates and the Japanese telecommunications company Softbank Group (OTCMKTS:SFTBF). In addition, IonQ has been developing strategic partnerships with Microsoft, Amazon’s (NASDAQ:AMZN) Amazon Web Services and Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Cloud.
Honeywell International Inc. (NASDAQ: HON): In November, Honeywell merged its Honeywell Quantum Solutions with Cambridge Quantum, creating a large new quantum computing company called Quantinuum. The focus of both these companies is to build “the world’s highest-performing quantum computer and a full suite of quantum software, including the first and most advanced quantum operating system.
With Honeywell investing heavily in this technology and planning to create a unique quantum operating system for quantum platforms, Honeywell is a great quantum computing stock to invest in. Wall Street expects Quantinuum to go public by the end of 2022. In the meantime, investors can still get exposure to the company through Honeywell, which owns a 54% stake in Quantinuum.
Amazon.com Inc. (NASDAQ: AMZN): Amazon is an e-commerce platform with also focuses on cloud computing. Amazon is continuously investing in this technology and recently announced a more advanced theoretical blueprint of a quantum computer design which is expected to reduce errors. The researchers at Amazon are now working toward implementing their ideas with hardware.
Rigetti Computing (NASDAQ: RGTI): Rigetti was founded in 2013 by Chad Rigetti and claims to be the first “universal” quantum computing company. The business builds superconducting quantum computers and delivers them through its own cloud services platform and through QCaaS providers. Its Quantum Cloud Services (QCS) platform serves global enterprises, various agencies of the U.S. government and leading research centers. Several of them include the National Aeronautics and Space Administration (NASA), the U.S. Department of Energy and Palantir Technologies (NYSE:PLTR).
Quantum Computing Inc (NASDAQ: QUBT): Quantum Computing Inc (QCI) was founded in 2018 with a vision to make quantum computing technology more accessible for non-quantum experts. Its core product, “Qatalyst”, is a ready-to-run quantum and classical software for optimization computations.
Best quantum computing ETF
Besides investing in individual companies, there is one ETF, or exchange-traded fund, dedicated to the quantum computing industry. QTUM offers investors research-based exposure to a diversified composite of companies that are leading the way in the quantum computing space. The fund tracks the BlueStar Quantum Computing and Machine Learning Index, has over 70 globally-listed companies throughout the quantum market. The top 10 holdings account for less than 20% of net assets of $161.5 million. Put another way, fund managers are not taking major bets on any company.
As an ETF diversified within the quantum space, QTUM’s performance might point to a widespread strength in the quantum space. If you want to invest in quantum computing at an early stage, this ETF is a good place to start.
Is now a good time to buy quantum computing stocks?
The truth is, you'll never know if it's exactly the right time to buy stocks. Invest when markets are rising, you may have missed the boat for the best returns. Invest when the markets falling, and they could fall a lot further still. However, if you're investing for the long term (say, more than five years), then the time to buy stocks may be as soon as you have the money available. Your decision depends on how quickly you’d need the money and whether you understand that shares can fall as well as rise.
How do I buy quantum computing stocks?
The easiest way to buy stocks is through an online stockbroker. After opening and funding your account, you can buy stocks through the broker's website in a matter of minutes. Other options include using a full-service stockbroker, or buying stock directly from the company.
The most popular online brokers for beginners are eToro, Robinhood, TD Ameritrade. eToro is a social trading and investment network that allows users to trade currencies, commodities, indices, crypto assets and stocks. Buy quantum computing stocks now using eToro.
Final thought
Quantum computing and quantum communication could impact many sectors, including healthcare, energy, finance, security, and entertainment. Quantum technology should be viewed as a critical enabler for industries in the future with applications including better methods of drug discovery and modeling financial markets. Nonetheless, the quantum industry is still in a very early stage, but plenty of research dollars are being funneled into this advanced tech. Although quantum computing pure-play stocks are still scarce, investing in technology giants with quantum computing exposure could yield impressive returns in the decades ahead.
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