10 Best Quantum Computing Stocks To Buy According to Hedge Funds

9. Arqit Quantum Inc. (NASDAQ:ARQQ)

Number of Hedge Fund Holders: 2

Arqit Quantum Inc. (NASDAQ:ARQQ) provides cybersecurity services through satellite and terrestrial platforms in the United Kingdom. In contrast to the other best quantum computing stocks according to hedge funds, the firm is not involved in the manufacture of quantum computers, but is instead focused on production of quantum-secure encryption to safeguard data against current and future cybersecurity threats, including those posed by quantum computers. One of the premier products of the firm is QuantumCloud, a Platform as a Service that creates unbreakable software encryption keys.

Earlier this month, the firm posted earnings for the 2024 fiscal year, reporting a revenue of $293,000. During the earnings call, the senior management of the firm stated that during the period, Arqit executed or was engaged in demonstration and testing initiatives with 13 organizations or enterprises. Per the management, this demonstrated that the firm was moving into a revenue growth and customer fulfillment phase of development. The management added that through a distribution partner, Arqit had executed a seven figure, multi-year annual recurring revenue contract for a significant governmental end customer.

As the firm focuses on the biggest and most actionable opportunities which reside in telecom, government and defense, Wall Street analysts are closely monitoring the progress of this quantum computing play. HC Wainwright recently raised the price target on the stock to $27 from $22 and kept a Buy rating on the shares. As the business moves into fiscal 2025, the advisory expects the company to deliver more meaningful revenue as demonstration activity moves to operating licenses.