3 Quantum Computing Stocks That Could 10X by 2030
Wall Street has been keeping a close eye on quantum computing stocks at the center of technology that will help solve computationally complex problems that rely on big data. Quantum technology, in a nutshell, can make advanced predictions and simplify challenging business operations.
Scientists highlight “the disruptive potential of a quantum computer, beyond anything classical computers could ever achieve.” As a result, the technology should positively affect a wide range of industries including agriculture, automotive, aviation, cybersecurity, finance, energy, medicine, and logistics.
In 2021, the global computing market was valued at around $470 million. Yet, recent research suggests it could go over $1.7 billion by 2026. Therefore, many companies that focus on quantum technologies could see their share prices increase significantly.
With that information, here are three quantum computing stocks to buy now:
|QTUM||Defiance Quantum ETF||$41.86|
Defiance Quantum ETF (QTUM)
52-Week Range: $38.75 – $57.15
Expense Ratio: 0.40% per year
Our first choice is an exchange-traded fund (ETF), namely the Defiance Quantum ETF (NYSEARCA:QTUM). It invests in companies that are at the center of quantum computing, artificial intelligence (“AI”), machine learning, and cloud computing.
QTUM, which has 73 stocks, was first listed in September 2018. Close to 20% of the fund is held in the leading 10 holdings. Net assets currently stand at $121.7 million.
Among the top names are pure-play quantum computing stock IonQ (NYSE:IONQ), Chinese AI giant Baidu (NASDAQ:BIDU), prominent technology company Honeywell International (NASDAQ:HON), and semiconductor heavyweight Texas Instruments (NASDAQ:TXN).
So far in 2022, the quantum fund has lost about a quarter of its value. A fund like QTUM could appeal to long-term investors who believe in the growth of quantum technology, and want to take advantage of this year’s bear market.
Honeywell International (HON)
52 week range: $167.35 – $233.19
Honeywell’s tech portfolio ranges from advanced materials to aerospace, personal protective equipment as well warehouse automation solutions. Regular InvestorPlace readers are likely to remember that in 2021, management merged Honeywell Quantum Solutions with Cambridge Quantum Computing to form Quantinuum.
It has become the largest quantum computing company worldwide, and by 2026, could reach $2 billion in sales. Analysts are also expecting Quantinuum to become public in the quarters ahead.
Honeywell announced second-quarter metrics in late July. Revenue was at $8.95 billion, up 2% year-over-year (YOY). Adjusted earnings per share came in at $2.10 per diluted share, up from $2.02 a year ago. Free cash flow (“FCF”) for the quarter was $843 million.
HON stock has lost almost 9% year-to-date (YTD) and the current price supports a dividend yield of 2.1%. Shares are trading at 22.2 times forward earnings and 3.8 times trailing sales. Wall Street’s 12-month median price forecast for Honeywell stock is at $203.50.
52-week range: $4.16 – $35.90
Our final stock, IonQ, became public in late 2021 through a reverse merger with dMY Technology Group III, a special purpose acquisition company (SPAC). The College Park, Maryland-based company develops quantum computers, including the IonQ Aria, the most powerful quantum computer worldwide. With a market capitalization (cap) of $1.2 billion, many expect IonQ to grow significantly in future quarters.
IonQ put out Q2 metrics in mid-August. Revenue was $2.6 million, compared to $93 thousand a year ago. Adjusted EBITDA loss came in at $11.6 million. Cash and equivalents ended the quarter at $571.3 million.
On Aug. 16, IonQ Aria joined the Azure Quantum platform of Microsoft (NASDAQ:MSFT) whose “quantum computing ecosystem [features] solutions, software and hardware.” IonQ suggests customers are already using “the system to develop algorithms that mitigate risk in finance, model chemical reactions within EV batteries, and improve image classification for future autonomous vehicles.” Needless to say, long-term IonQ investors are keeping a close eye on further developments.
Like the other quantum computing stocks on this list, IONQ stock hasn’t done very well so far this year. Since January, IONQ stock has lost close to two-thirds of its value. But analysts’ 12-month median price forecast for IonQ shares stands at $10.5.
On the date of publication, Tezcan Gecgil 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.