These premier quantum computing stocks are ripe for acquisition amidst significant market dips
5 days ago · By Ian Cooper, InvestorPlace Contributor
Investors are encouraged to consider integrating these quantum computing stocks into their portfolios forthwith.
D-Wave Quantum (QBTS): This stock garners a robust consensus buy rating, with an average price target currently set at $3.17.
IonQ (IONQ): Among the analysts evaluating this stock, three recommend a buy.
Rigetti Computing (RGTI): Another prime candidate among quantum computing stocks to purchase during periods of pronounced weakness.
Despite their downturn, these quantum computing stocks present compelling buying opportunities.
Firstly, McKinsey highlights that quantum computing holds the potential to resolve the most intricate problems more expeditiously than ever before. Secondly, Time notes that quantum computing could tackle “complex problems that currently occupy the most powerful supercomputers for years, potentially within seconds.” Thirdly, it’s worth noting that quantum computing could burgeon into a $1.3 trillion industry.
This technology can potentially expedite the discovery of new medical treatments, enhance financial transactions, and accelerate data processing, aiding in climate change mitigation. Furthermore, cybersecurity and other extraordinarily complex issues could be resolved more swiftly than with conventional computers.
Bank of America (NYSE
) analysts are already lauding quantum computing as “a revolution for humanity, surpassing the significance of fire or the wheel.” Even more enticing is the fact that some of the leading quantum computing stocks can be acquired at bargain prices.
D-Wave Quantum (QBTS)
Following a decline from a peak of approximately $2.40, D-Wave Quantum (NYSE
) has been stabilizing around $1.10, marking it as a buying opportunity. The stock maintains a strong buy consensus rating, with an average price target of $3.17.
While earnings were lackluster, with an EPS loss of 11 cents in line with expectations and revenue of $2.47 million (a 56.3% increase year-over-year) missing the mark by $530,000, the first quarter bookings of $4.5 million represent a 54% year-over-year increase.
“Alongside the significant technical milestones achieved with the Advantage2 prototype, our progress in leading the commercialization of quantum through our products, customer application development, and accelerating adoption is evident,” stated CEO Dr. Alan Baratz.
Additionally, a recent survey of 300 businesses revealed that 290 anticipate investing $3 million to $6 million in quantum optimization, with a potential 10x to 20x return on investment.
IonQ (IONQ)
IonQ (NYSE
) also emerges as a buy amid market weakness.
After dipping from about $22 to a recent low of approximately $7.30, IONQ found strong support and is beginning to recover from overextensions in RSI, MACD, and Williams’ %R. Among the analysts covering the stock, three recommend a buy.
Moreover, the company’s EPS loss of 19 cents surpassed expectations by six cents. Revenue of $7.6 million (a 77.2% year-over-year increase) exceeded estimates by $600,000, with $300,000 in new bookings in the first quarter. IONQ reaffirmed its full-year revenue target of $37 million to $41 million, a notable improvement from the $22 million reported last year.
Benchmark analysts with a buy rating on IONQ recently observed: “The company’s expanding customer base, including Airbus, Hyundai Motors, and the United States Air Force Research Laboratory, as well as recent sales in Europe, have generated rising interest in system purchases, particularly in Europe, fueling optimism for the coming year.”
Rigetti Computing (RGTI)
Rigetti Computing (NASDAQ
), a trailblazer in quantum computing, offers comprehensive quantum computing services through Rigetti Quantum Cloud Services, serving global enterprise, government, and research clients. This stock is also a prime candidate for purchase during significant market dips.
After a decline from $1.40 to a recent low of 96 cents, the stock is oversold. Analysts maintain a bullish outlook with a consensus moderate buy rating and an average price target of $3.
“Analysts predict that Rigetti will post a loss per share of 41 cents, an improvement over last year’s loss of 57 cents. Revenue could reach $15.3 million, a 27.4% increase from the previous year. By fiscal 2025, sales could soar to $28.89 million, nearly an 89% increase from the projected 2024 revenue.”
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Disclosure: On the publication date, Ian Cooper did not hold any positions in the securities mentioned. The opinions in this article are those of the author and are subject to InvestorPlace.com’s Publishing Guidelines.
About the Author: Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
Frequently Asked Questions
What is Quantum Computing?
Quantum computing is a type of computation that harnesses the principles of quantum mechanics to perform complex calculations much faster than classical computers.
How does Quantum Computing differ from Classical Computing?
Unlike classical computing, which uses bits as the basic unit of information, quantum computing uses qubits. Qubits can exist in multiple states simultaneously, enabling quantum computers to process vast amounts of data in parallel.
What industries will benefit the most from Quantum Computing?
Industries such as pharmaceuticals, finance, logistics, and cybersecurity are expected to benefit significantly from the advancements in quantum computing due to its ability to solve complex problems more efficiently.
How do I invest in Quantum Computing stocks?
Investing in quantum computing stocks involves purchasing shares of companies like D-Wave Quantum, IonQ, and Rigetti Computing through stock exchanges. It’s advisable to conduct thorough research and consider consulting with a financial advisor.
What are the main risks associated with Quantum Computing investments?
The primary risks include market volatility, technological uncertainties, and the potential for slower-than-expected adoption rates. It’s essential to stay informed about the latest developments in the quantum computing sector.
Conclusion
Quantum computing represents a transformative technological advancement with immense potential. Companies like D-Wave Quantum, IonQ, and Rigetti Computing are at the forefront of this revolution, offering significant investment opportunities. However, as with any emerging technology, it’s crucial to consider the risks and conduct thorough research before making investment decisions.