Quantum computing technology isn’t so far out that investors can ignore it. It’s coming faster than most people think, and in order to realize maximum gains, investors need to start positioning their portfolios accordingly to take advantage of what could be a massive industry.
Currently, the quantum computing market has relatively few sales of early-stage systems, and most revenue is derived from research partnerships and contracts. However, by 2035, McKinsey & Company estimates that the quantum computing industry could generate up to $72 billion in annual revenue. That’s a huge opportunity expected to emerge over the next decade, and widespread quantum computing could be available as soon as 2030.
As a result, investors have no time to lose in filling their portfolios with top quantum computing picks, as the best gains will come in the early days of the rollout, when there’s the most uncertainty about who will win. I’ve got three stocks that I think are fantastic quantum computing investments, and make for genius buys in April.
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IonQ
IonQ (IONQ 2.15%) is my top pure-play quantum computing pick. IonQ has no other businesses outside of quantum computing; if it fails in this task, it’s probably going to $0. That’s a scary outlook, but if you look at its technology, IonQ looks likely to win in this space.
It uses trapped-ion technology, which gives it an accuracy advantage over some popular quantum computing methods. It also recently unveiled its blueprint to build a quantum computer with 10,000 qubits — a mark some consider the minimum threshold for a commercially viable quantum computer.
Today’s Change
(-2.15%) $-0.94
Current Price
$42.69
Key Data Points
Market Cap
$16B
Day’s Range
$41.26 – $44.39
52wk Range
$25.89 – $84.64
Volume
21M
Avg Vol
26M
Gross Margin
-2267.11%
The military also selected IonQ (along with a handful of others) for its DARPA contract, which showcases IonQ’s prowess when compared to several other leading quantum computing companies. I think this gives plenty of credence to IonQ as an investment, making it a top quantum computing stock pick.
D-Wave Quantum
D-Wave Quantum (QBTS 4.25%) is another top option. D-Wave Quantum isn’t approaching the quantum computing space from a normal perspective. Instead of trying to build general-purpose quantum computers that can handle workloads similar to those of today’s computers, it’s focusing on quantum annealing technology. Quantum annealing is best suited for optimization problems. Essentially, the computer works by seeking the lowest-energy state of the system, giving you an estimate of the ideal solution.
Today’s Change
(-4.25%) $-0.82
Current Price
$18.49
Key Data Points
Market Cap
$6.8B
Day’s Range
$17.90 – $19.68
52wk Range
$6.52 – $46.75
Volume
24M
Avg Vol
28M
Gross Margin
82.59%
This isn’t some far-fetched technology that has no use; it’s being used right now by several manufacturers to develop production schedules and analyze supply chains. As more companies start to adopt quantum computing hardware for applications like this, D-Wave could establish itself as an early mover and capture some market share for niche applications where quantum computing is the perfect solution.
Nvidia
Last is Nvidia (NVDA +4.30%), which may seem like an odd pick. Nvidia makes graphics processing units (GPUs) and is a leader in the AI computing realm. This business and demand have driven Nvidia to become the world’s largest company, so why is it a top quantum computing stock pick?
Today’s Change
(4.30%) $8.60
Current Price
$208.24
Key Data Points
Market Cap
$5.1T
Day’s Range
$199.82 – $210.94
52wk Range
$104.08 – $212.19
Volume
8M
Avg Vol
174M
Gross Margin
71.07%
Dividend Yield
0.02%
Nvidia isn’t ignoring the future; it believes that quantum computing will become an integral part of computing infrastructure, but it won’t do it alone. Instead of a quantum-first world, Nvidia believes the best approach will be a hybrid one, where a quantum computer interfaces with accelerated computing units like Nvidia’s GPUs.
Nvidia has already taken steps to ensure its products are useful in this application, including launching the NVQLink, which allows quantum computers to plug into existing accelerated computing infrastructure. It has also adapted its CUDA software for quantum applications and launched an AI model to assist in quantum computing accuracy and error correction.
Nvidia will likely be a major partner in the quantum computing industry, and it’s also benefiting from massive AI demand. That one-two punch of the two largest tech trends expected to emerge over the next decade makes Nvidia a great quantum investment pick.
