As the market heats up, investors are looking for the best quantum computing stocks to buy.
Quantum computing is evolving at breakneck speed. Fortune Business Insights predicts that the worldwide quantum computing industry will grow to $4.76 trillion by 2030 from $712 billion in 2022.
Quantum computing, often referred to as supercomputers, promises to have far reaching impacts on our daily lives, from advancing machine learning and helping to develop new medications to creating ultra efficient batteries and enhancing cybersecurity.
The convergence of A.I. and quantum computing is expected to take us places that, until now, have only been imagined in the realm of science fiction. Here are three quantum computing stocks to buy sitting in the sweet spot.
| IONQ | IonQ | $6.62 |
| HON | Honeywell | $194.15 |
| IBM | International Business Machines Corp. | $129.41 |
IonQ (IONQ)
Started by academics at the University of Maryland and Duke University, IonQ (NYSE:IONQ) is a smaller quantum computing company developing the hardware and software that powers supercomputers.
Powered by the hype around artificial intelligence and growing expectations for quantum computing technology, IONQ stock has risen 107% so far this year – doubling its share price.
Still in start-up mode, IonQ posted fourth quarter 2022 revenue of $3.8 million, and full-year revenue of $11.1 million. While that might seem like small potatoes, the company’s revenue grew five fold between 2021 and 2022.
IonQ’s stock jumped 31% higher the day after its latest earnings print was made public. While IonQ remains unprofitable, it has more than $500 million in cash on hand that it plans to use to scale its quantum computing business.
Honeywell (HON)
Honeywell (NASDAQ:HON) may not seem like an obvious choice when discussing quantum computers.
After all, the company is primarily an industrial manufacturer that makes products ranging from aerospace equipment to medical devices. However, Honeywell is increasingly a technology company and its diverse operating units include a growing one focused on quantum computing.
Honeywell has developed its own quantum computer that it employs for research with its industrial partners.
Honeywell’s push into quantum computing is getting a big boost from the company’s plans to spin off “Honeywell Quantum Services” as a separate, standalone entity and merge it with privately held start-up Cambridge Quantum Computing.
Once the merger is complete, Honeywell will remain the controlling shareholder of the new firm. HON stock is up a slight 2% over the last 12 months following a 10% rally during the past six months. Over the past five years, the company’s share price has increased nearly 40%.
IBM (IBM)
Legacy technology company International Business Machines Corp. (NYSE:IBM) has undergone a lot of changes in recent years. It spun off its managed infrastructure business into Kyndryl (NYSE:KD) and repositioned itself largely as a cloud computing firm.
However, one thing that hasn’t changed is IBM’s commitment to supercomputing. The company runs “IBM Quantum,” a division that is focused on building quantum computers for commercial and scientific applications.
IBM has long been a pioneer in the area of quantum computing and supercomputers, and was the first company to bring quantum computing to the cloud back in 2016. IBM also hosts an annual Quantum Summit.
At last year’s event, the company introduced “Osprey,” the largest quantum processor currently available. Osprey is being integrated into IBM’s most powerful quantum computing system yet, called “Quantum System Two,” that the company plans to launch in this year’s second half.
IBM stock is up 3% over the last 12 months after an 11% gain in the previous six months.
On the date of publication, Joel Baglole 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.
