10 Best Quantum Computing Stocks To Buy According to Hedge Funds

5. Honeywell International Inc. (NASDAQ:HON)

Number of Hedge Fund Holders: 55   

Honeywell International Inc. (NASDAQ:HON) operates as a diversified technology and manufacturing company worldwide. Over the past few years, the company has emerged as a leader in the development of precision control systems, stemming from legacy expertise in the manufacture of aerospace and industrial products. This gives the firm a competitive edge in developing advanced quantum hardware. The firm serves the quantum computing market through Quantinuum, a firm formed in 2021 through the merger of Honeywell Quantum Solutions and Cambridge Quantum.

The firm features on the list of best quantum computing stocks according to hedge funds as it  combines hardware and software expertise to offer end-to-end quantum solutions. Some of the key areas where the company serves quantum customers include quantum chemistry, optimization, cybersecurity, and machine learning. Since it was founded, Quantinuum has raised over $620 million in funding, including $300 million from a group of high profile investors earlier this year. Latest reports suggest that Honeywell, which retains a 54% ownership stake in the quantum firm, plans to take it public at a valuation of over $10 billion.

However, not all hedge funds are impressed by the quantum venture of Honeywell. For example, earlier this year, Elliott Management, led by billionaire Paul Singer, penned an open letter to the board of directors of Honeywell, urging for the breakup of the business to separate the aerospace and automation activities. The letter stated that in Honeywell’s case, its underlying business units not only competed with one another for investment allocation, but also had to compete against broader corporate initiatives. The letter named Quantinuum as an example, noting that while the fund made no judgment on Quantinuum itself, it was reasonable to question whether Honeywell’s investing in quantum computing was a distraction – in either investment dollars or management mindshare – from its core businesses.