3 Quantum Computing Stocks to Buy Now: Q3 Edition
Quantum computing is a burgeoning field in advanced computation technology that has the capabilities to outpace the computing prowess of generative artificial intelligence (AI). Generative AI came into the spotlight early last year with OpenAI’s release of ChatGPT. Now swaths of companies are trying to leverage large language models (LLMs) to build their own generative AI tools or products. Though everyone now seems to be focused on artificial intelligence, quantum computing will likely bring about computational efficiencies and abilities people hadn’t thought about previously. Unlike classical computers, quantum computers leverage quantum mechanics to conduct advanced computations, from optimization analysis to weather prediction. For investors looking for promising opportunities, there are plenty of quantum computing stocks to buy now that could benefit from the advancements in this field.
There are a number of pure-play quantum computing firms, but only a select few are worth considering as an investment. Moreover, for a safer bet on quantum computing, investors can also look to larger tech companies which have been investing in the field for years.
Below are 3 quantum computing stocks to buy now in Q3.
IonQ (IONQ)
A quantum computing stock that has taken a severe beating in the markets this year has been quantum computing specialist IonQ (NYSE:IONQ). In fact, according to Koyfin, IONQ shares have plummeted nearly 31% on a year-to-date basis, as of the end of Wednesday’s trading session. This, in stark contrast to the rally IONQ experienced in 2023, which saw the quantum computing stock’s share price surge 198% for that year. This was mostly a matter of the AI “craze” that had been frothing up markets since the beginning of 2023 seeping into other novel industries. As I have explained in prior articles on IonQ, the firm leverages a trapped-ion system that traps barium or ytterbium ions in an electromagnetic field, allowing their ability power to be manipulated and harnessed in quantum computations. IonQ’s latest quantum computer is the Aria quantum system, which has 25 qubits.
First quarter results for the firm beat Wall Street estimates, and the firm’s guidance also gave investors something to hopeful about. Despite the bearish sentiments I held about the stock in the past, IonQ’s share could likely see a resurgence as the market continues to benefit from the AI craze and positive macroeconomic news.
Nvidia (NVDA)
AI chipmaker Nvidia (NASDAQ:NVDA) experienced a big downturn in its shares on Wednesday. News that the United States is floating a fresh round of comprehensive tariffs on semiconductors as well as the likelihood of another Trump presidency sent shares of major chipmakers, particularly those in Asia or high exposure to the region, plummeting. Nvidia, in particular, dropped 6.6% by the end of Wednesday’s trading session. Ultimately, the possibility of new tariffs becoming implemented a few months away from the election is unlikely, so investors should probably take this dip as an opportunity to invest in the chipmaking behemoth.
Outside of AI accelerator chips, Nvidia has been investing in quantum computing technologies for a while now. CUDA-Q is Nvidia’s developer’s software toolkit that will allow quantum computing developers to better program quantum hardware. Since the late 2000s, Nvidia’s software toolkit CUDA has been instrumental in helping to keep the chipmaker’s graphics chips performing better than competitors. With a quantum version of CUDA, Nvidia may be able to gain an upper hand in the field of quantum computing.
International Business Machines (IBM)
The last quantum computing stock to consider is International Business Machines (NYSE:IBM). The stock has rallied 16.8% since the start of the year, but its valuation is still reasonable, trading at just 19.1x forward earnings. IBM has been researching and developing quantum computers since the early 2000s, and every few years, seems to come up with even better iterations of quantum computers. In December 2023, IBM announced the Quantum System Two, which is a supercomputer located in Yorktown Heights, New York. This quantum supercomputer boasts three of IBM Heron processors. These processors boast 133-qubits each, some of the highest number of qubits in a processor to date.
Going forward, IBM will improve the commercial viability of quantum computing systems. Permitting quantum power to be harnessed via the IBM Cloud is already a positive step in that direction.
Although IBM clearly has its hands in a number of technology services businesses, including cloud migration and other professional services related to that, the firm’s quantum computing investments could really pay off and be a boon to its future revenue and earnings.
On the date of publication, Tyrik Torres did not hold (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.
