Quantum computing is more than just a trend investors are following right now. There are companies doing some pretty amazing things in the world of advanced computing. And some experts expect the realized disruption from the quantum computing revolution could be just about as important as the ongoing AI revolution.
Now, the jury is still out on precisely what the impact of this nascent technology will ultimately be. In theory, the ability for computers to use qubits to process vast amounts of data in a much shorter time frame should bring about a significant number of disruptive and innovative technologies that could truly change the way companies do business.
I’m of the view that it’s probably still too early to say for certainty whether quantum computing will be all it’s cracked up to be. But where there’s potential, there’s typically a line of investors willing to put their capital to work in companies looking to capitalize on whatever trend it is that’s hot at the moment.
With that in mind, let’s dive into three of the most significant pure play options in the quantum computing space, and why they look like solid opportunities for those looking to invest in the quantum computing space.
IonQ (IONQ)
One quantum computing company most investors would consider to be ubiquitous with this space is IonQ (NYSE:IONQ).
Like the other names on this list, IonQ has made some recent breakthroughs that have investors salivating at this company’s potential over the long-term. With IonQ achieving what could be the most significant milestone in the quantum computing world by solving the most complex protein folding problem ever on a computer, there’s a lot to like about this company’s upside.
And with a number of recent acquisitions, as well as some very powerful prototypes that have stood initial testing expectations, this is a company with some core underlying technology that investors clearly want to see more of.
It’s unclear exactly what discoveries computers made by IonQ will unfold over time. Applications in the medical sector alone (drug discovery, for example) could be massive, as is other imaging applications as well. For now, the stock’s valuation of around $12 billion seems reasonable, given the company’s potential long-term upside.
D-Wave Quantum (QBTS)
Another intriguing quantum computing stock I think investors who are interested in this space will certainly want to do their homework on is D-Wave Quantum (NYSE:QBTS)
Unlike gate-based systems pursued by others, dWave specializes in quantum annealers optimized for solving complex optimization and sampling problems at scale. What this means is that D-Wave is able to process information using computing systems with more than 5,000 qubits. Doing so maximizes this company’s computing power and the ability of its core hardware to solve the sort of real-world problems that have stumped scientists for decades.
Given the stock’s return of more than 2,000% over the past year alone, it’s clear that investors are betting on D-Wave as a potential run-away leader in this space. Of course, more in the way of practical applications will need to be shown to further this thesis. But if the company’s computers can solve the problems D-Wave’s management team seems to think its technology is capable of handling, there could indeed be significant upside ahead.
Quantum Computing (QUBT)
Last, but certainly not least on this list of quantum computing stocks investors may want to give a look is Quantum Computing (NASDAQ:QUBT). Given the fact that this company is named after the quantum revolution itself, it’s a fitting pick to include on this list.
What Quantum Computing focuses on is providing both software and hardware solutions to companies in the private sector, as well as government entities. Developing quantum-ready algorithms for its client, Quantum Computing provides fully optimized solutions for its clientele, recently announcing a number of software enhancements which improve the effectiveness of the company’s overall systems for its core clientele.
For companies looking to make ultra-fast modeling and optimization calculations with as little energy input as possible, Quantum Computing’s modular systems create the sort of diverse architectures companies are likely to gravitate toward over time.
Given Quantum Computing’s early stage nature (as are all companies in this space), this is a stock that is really currently being driven by partnerships and industry use case narratives. We’ll have to see how the company’s cash flow growth progresses, but thus far, Quantum Computing has proven to be an efficient allocator of R&D capital. For many investors, that story is enough to invest in.
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