In this article, we will discuss the 10 Best Quantum Computing Stocks to Buy for 2025.
Quantum computing is a revolutionary technology that integrates quantum physics properties into a computer. This technology has the potential to revolutionize industries by solving complex issues at a rapid pace as compared to traditional computing methods. Notably, businesses across sectors, such as finance, healthcare, and transportation, continue to explore several benefits of quantum computing in a bid to have a competitive edge and fuel innovation.
Trends To Watch Out For in 2025
Heading into 2025, government aid, strategic initiatives, and legislative support for research are some of the key trends likely to fuel growth. In July 2024, US Senators John Hickenlooper and Michael Bennet highlighted the Department of Commerce’s announcement that Colorado’s Elevate Quantum was given $40.5 million in federal funding to build the nation’s leading quantum ecosystem.
Hickenlooper added that Colorado is regarded as the Silicon Valley of the quantum era, and Elevate Quantum is expected to lead. Hickenlooper went on to say that Quantum is well-placed to revolutionize medical drug discovery, supercharge AI, strengthen US cybersecurity, and support the transition to clean energy.
Also, in late November 2024, The Senate advanced the Department of Energy (DOE) Quantum Leadership Act of 2024, proposing $2.5 billion over 5 years to fuel US quantum R&D. Notably, the bipartisan bill emphasizes quantum networking, domestic manufacturing, and public-private partnerships to ramp up quantum innovation.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Industries Likely to Benefit
The Wall Street Journal reported that quantum computers possess the potential to reduce global carbon emissions by 7 gigatons by 2035 and 150 gigatons by the upcoming 30 years, while adding up to $1.3 trillion in value to key transition industries, as per McKinsey. The rapid computational power it promises is expected to revolutionize batteries for electrification, transform carbon-heavy industrial operations, establish cleaner methods for agriculture, and help reimagine fuel’s future.
Grand View Research highlighted that the growth in the quantum computing market in the US should be driven by higher government and private sector investment in quantum technologies. This growth is likely to stem from the potential of quantum computing to revolutionize industries including materials science, drug discovery, and finance.
Amidst these developments, it is worth looking at the following 10 Best Quantum Computing Stocks to Buy for 2025.
A modern computer datacenter, running an advanced quantum computer system.
Our Methodology
To list the 10 Best Quantum Computing Stocks to Buy for 2025, we conducted extensive research and sifted through several online rankings. After getting the initial list of 12-15 stocks, we chose the ones that were popular among hedge funds and that analysts saw upside to. Finally, the stocks are arranged in ascending order of their hedge fund sentiment, as of Q3 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Quantum Computing Stocks to Buy for 2025
10) Quantum Computing Inc. (NASDAQ:QUBT)
Number of Hedge Fund Holders: 2
Quantum Computing Inc. (NASDAQ:QUBT) specializes in quantum computing technologies. The company is engaged in developing accessible and affordable quantum machines. These are designed to operate at room temperature and low power, aiming for applications in high-performance computing, AI, cybersecurity, and remote sensing. A series of positive developments supported the recent surge in Quantum Computing Inc. (NASDAQ:QUBT)’s stock of ~128% in just a month.
First off, the company announced concurrent offerings of common stock, which are expected to result in aggregate gross proceeds of $50 million. These funds will be used to advance the development of its quantum technologies, including the buildout of its US-based thin film lithium niobate (TFLN) Photonic Chip Foundry in Tempe, Arizona, which remains on track for completion in Q1 2025. Secondly, Quantum Computing Inc. (NASDAQ:QUBT) sealed a contract with NASA’s Goddard Space Flight Center, which applies its entropy quantum optimization machine, Dirac-3, to aid NASA’s advanced imaging and data processing demands.
There is optimism about Quantum Computing Inc. (NASDAQ:QUBT)’s performance in 2025. This is because the operational ramp-up of its TFLN Photonic Chip Foundry is expected to allow Quantum Computing Inc. (NASDAQ:QUBT) to fuel revenue generation, scale production, and ramp up the advancement of its high-performance computing products. Next, working with NASA provides Quantum Computing Inc. (NASDAQ:QUBT) an opportunity to push the boundaries of its technology, solving real-world challenges and improving quantum solutions.
9) Arqit Quantum Inc. (NASDAQ:ARQQ)
Number of Hedge Fund Holders: 2
Arqit Quantum Inc. (NASDAQ:ARQQ) focuses on quantum-safe encryption solutions, leveraging principles of quantum mechanics. The company’s flagship product, QuantumCloud™, generates unbreakable encryption keys for secure communication. Scott Buck, an analyst at H.C. Wainwright, added that after significant investor interest in AI, the focus is expected to pivot to quantum computing as a potential leading theme for 2025 and beyond. This might also benefit Arqit Quantum Inc. (NASDAQ:ARQQ).
As Arqit Quantum Inc. (NASDAQ:ARQQ) successfully monetizes its technology and seals new contracts, its stock is expected to continue its runway, says Buck. The company is well-placed to capitalize on the evolving threat of data security breaches because of quantum computing in the future. Furthermore, as Arqit Quantum Inc. (NASDAQ:ARQQ) transitions from demonstration activity to operational licenses, its revenue stream will be bolstered. Though perpetual licenses offer upfront payments, they don’t contribute to ongoing income. However, operational licenses, despite generating lower initial revenue, should accumulate over time as more and more customers adopt the software, resulting in a steady increase in ARR.
Given improved operational results and strategic engagements in the EMEA region, the company is well-placed for significant revenue growth starting in 2025. On a related note, Arqit Quantum Inc. (NASDAQ:ARQQ) got a multi-year enterprise license contract in the EMEA region for a government end user which should result in seven figures in annual recurring revenue in total. Notably, the revenue generation is expected to commence in the current fiscal period.
8) D-Wave Quantum Inc. (NYSE:QBTS)
Number of Hedge Fund Holders: 6
D-Wave Quantum Inc. (NYSE:QBTS) develops and delivers quantum computing systems, software, and services. D-Wave Quantum Inc. (NYSE:QBTS)’s stock has experienced a strong increase of ~104% in just a month. Much of this growth stemmed from the overall optimism around the quantum computing space (which was further validated after tech giants such as Alphabet and Amazon made significant advancements in quantum initiatives), analyst coverage, and some notable milestones. D-Wave Quantum Inc. (NYSE:QBTS) completed calibration and benchmarking of its 4,400+ qubit Advantage2 processor, marking a significant step forward in its ongoing development of the 6th generation annealing quantum computing system.
The latest Advantage2 processor demonstrates significant performance gains over the current Advantage™ system in solving customers’ complex computational problems in fields like optimization, AI, and materials science. Also, D-Wave Quantum Inc. (NYSE:QBTS) secured strategic partnerships throughout sectors. For example, its work with NTT DOCOMO for mobile-network optimization and with Japan Tobacco Inc. for drug-discovery applications exhibits the practical potential of the company’s quantum solutions.
Also, B. Riley maintained its “Buy” rating on D-Wave Quantum Inc. (NYSE:QBTS)’s shares. This optimism stems from its confidence in the company’s growth trajectory and potential to transform industries spanning pharmaceuticals to logistics via its quantum computing solutions. As per Trent Carter, an analyst at B. Riley Financial, given its strategic investments and ongoing breakthroughs, D-Wave Quantum Inc. (NYSE:QBTS) is well-placed for long-term growth.
7) Rigetti Computing, Inc. (NASDAQ:RGTI)
Number of Hedge Fund Holders: 7
Rigetti Computing, Inc. (NASDAQ:RGTI) builds quantum computers and superconducting quantum processors. The company’s stock has been on investors’ radar and much of the appreciation in the stock price stemmed from an investment bank’s optimism about its growth outlook. The stock price went up by ~313% in just a month, with Craig-Hallum believing that quantum computing technology is expected to be revolutionary.
The investment bank added that investors are required to focus on this technology. As per the firm, Rigetti Computing, Inc. (NASDAQ:RGTI)’s unmatched ability to grow its quantum business can help surpass its peers over the longer term. The company’s release of an 84-qubit Ankaa-3 quantum computer fueled much of the optimism. Ankaa-3 features superior two-qubit gate fidelities, delivering 99.0% for iSWAP gates and 99.5% for fSim gates, along with lower error rates.
Rigetti Computing, Inc. (NASDAQ:RGTI) believes that such improvements are important when it comes to including quantum computing in practical applications in cryptography and drug discovery. Rigetti Computing, Inc. (NASDAQ:RGTI) plans to roll out the next generation of its modular system architecture while continuing to increase fidelities in 2025. By mid-year 2025, the company projects to release a 36-qubit system based on four 9-qubit chips tiled together, with the targeted 2x reduction in error rates from the present level. Analysts at Craig-Hallum initiated coverage of the shares of Rigetti Computing, Inc. (NASDAQ:RGTI), and gave a “Buy” rating with the $12 price target.
6) IonQ, Inc. (NYSE:IONQ)
Number of Hedge Fund Holders: 17
IonQ, Inc. (NYSE:IONQ) is engaged in the development of general-purpose quantum computing systems in the US. The company’s comprehensive solutions and growing network capabilities place it at the forefront of the quantum computing commercialization race. IonQ, Inc. (NYSE:IONQ) expanded its global presence by launching its first quantum computer in Europe. This move focuses on enhancing accessibility to quantum computing resources for European researchers, businesses, and institutions.
DA Davidson believes that IonQ, Inc. (NYSE:IONQ) is a compelling pure-play investment, that is well-placed to capitalize on quantum computing’s rapid growth. This growth is driven by the increasing inadequacy of classical computing for solving complex problems. Furthermore, IonQ, Inc. (NYSE:IONQ) is expected to grow in 2025 due to its monetization strategy. The company has partnerships with NKT Photonics (to establish next-generation laser systems for quantum computers) and Amazon Web Services (to offer quantum computing capabilities via cloud services).
As a result of IonQ, Inc. (NYSE:IONQ)’s partnership with NKT Photonics, the latter would be developing and delivering 3 prototype optical subsystems to the company in 2025, designed to support the commercialization of IonQ, Inc. (NYSE:IONQ)’s data center-ready quantum computers – like IonQ Tempo and future barium-based systems. IonQ, Inc. (NYSE:IONQ) has converted such partnerships into successful implementations, addressing real-world problems. The company serves clients such as AstraZeneca, and Airbus, among others. Therefore, it can garner revenue by monetizing its technology.
5) FormFactor, Inc. (NASDAQ:FORM)
Number of Hedge Fund Holders: 25
FormFactor, Inc. (NASDAQ:FORM)’s Systems segment includes advanced wafer probing systems that are used for evaluating semiconductor performance and reliability. The sales of the company’s probe stations, thermal systems, and cryogenic systems are included in the Systems segment. These are mainly important for R&D and production in emerging technologies, such as 5G, artificial intelligence (AI), and quantum computing.
FormFactor, Inc. (NASDAQ:FORM)’s Systems segment has significant growth potential to fuel revenue growth due to its alignment with key trends in advanced technology. The company’s cryogenic probe stations are important for testing quantum processors at ultra-low temperatures. As quantum computing progresses from research to commercialization, the demand for these systems is expected to grow. In the Systems segment, FormFactor, Inc. (NASDAQ:FORM) delivered the expected sequential increase in Q3 2024 revenue as customers continue to engage it to solve the most complex electro-optical test and measurement challenges in areas such as quantum computing and silicon photonics.
In Q3 2024, FormFactor, Inc. (NASDAQ:FORM)’s Systems segment saw revenues of $35.7 million as compared to $30.6 million in Q2 2024. The products in the Systems segment, like cryogenic and thermal probing solutions, are higher-margin and command premium pricing. Therefore, this segment should drive overall momentum as and when the broader quantum computing industry experiences growth.
4) Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 55
Honeywell International Inc. (NASDAQ:HON) has made numerous investments in the development of quantum computing technologies. The company’s quantum-computing business, Quantinuum, is at a critical spot when considering the breakup of this conglomerate. Around July 2024 end, Bloomberg reported that Honeywell International Inc. (NASDAQ:HON) has been considering going for an IPO of Quantinuum. It has also held several meetings with numerous investment banks regarding the potential listing in the US and might get a valuation of ~$10 billion.
With the help of Quantinuum, Honeywell International Inc. (NASDAQ:HON) continues to position itself to take on a significant share of the growing quantum computing-as-a-service market. Therefore, the ability to access quantum computers through a cloud (as a service) should attract businesses not ready to build their own quantum infrastructure. By accessing its quantum hardware and software via cloud-based platforms, Honeywell International Inc. (NASDAQ:HON) is expected to generate recurring revenue from this emerging industry. Furthermore, Quantinuum is expected to benefit from collaborations with several prominent players such as Microsoft and Airbus, further enhancing its capabilities and broadening its customer base.
Wolfe Research analyst, Nigel Coe, believes that Honeywell International Inc. (NASDAQ:HON)’s Quantinuum reflects a comparable business to lonQ, which is a leading quantum computing company well-placed to capture the growth momentum of burgeoning quantum computing technology. Notably, Quantinuum’s focus on both quantum hardware (trapped-ion technology) and software enables it to differentiate itself by catering to both sides of the quantum computing equation.
3) International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 56
International Business Machines Corporation (NYSE:IBM) has been tagged as one of the pioneers in the quantum computing industry, with its IBM Quantum System One regarded as one of the earliest efforts at quantum computing. The system forms part of International Business Machines Corporation (NYSE:IBM)’s broader effort to establish itself as a leader in quantum technology and fuel revenue growth. The company is offering quantum computing as a service through the IBM Quantum Platform, allowing businesses, research institutions, and developers to access its quantum hardware remotely through the cloud.
As per IBM quantum roadmap, in 2025, International Business Machines Corporation (NYSE:IBM) will demonstrate the first quantum-centric supercomputer by integrating modular processors, middleware, and quantum communication. The company also plans to enhance the quality, execution, speed, and parallelization of quantum circuits. Furthermore, in 2026, International Business Machines Corporation (NYSE:IBM) will enable its quantum circuits with 7,500 gates through circuit quality improvement. By running circuits with more gates, the company’s clients will be able to expand their use case exploration.
In Q3 2024, International Business Machines Corporation (NYSE:IBM) reported a total gross profit margin of ~56%, demonstrating efficient cost management. This will potentially support the company’s ability to invest in growth areas such as generative Al and quantum computing. International Business Machines Corporation (NYSE:IBM) opened Europe’s first IBM Quantum Data Center. This is the second IBM Quantum data center deployed globally, which should advance its goal of expanding access to the world’s most performant quantum computers.
2) Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOGL) announced a significant advancement in quantum computing with the unveiling of its next-generation chip called ‘Willow’. Willow reflects an improved error correction, which is a critical challenge in quantum computing. With the effective management of errors, the chip ensures more reliable and scalable quantum computations. In benchmark tests, Willow was able to complete computations in under 5 minutes that would have taken most powerful classical supercomputers ~10 septillion years. After the announcement of Willow, Alphabet Inc. (NASDAQ:GOOGL)’s stock saw a strong increase (up by ~12.5% in just a month) reflecting investor optimism about the company’s technological advancements and their potential market implications.
Alphabet Inc. (NASDAQ:GOOGL)’s Chief Executive stated that Willow is an important step in the company’s journey to build a useful quantum computer with practical applications across areas such as drug discovery, fusion energy, battery design, and more. Willow can reduce errors exponentially as Alphabet Inc. (NASDAQ:GOOGL) scales up using more qubits. This cracks a key challenge in quantum error correction that the field has pursued for ~30 years.
Much of the optimism about Alphabet Inc. (NASDAQ:GOOGL) stems from the monetization opportunities that become available with the success of Willow. By offering Quantum Computing as a Service (QCaaS) via Google Cloud, the company can monetize its quantum technology through subscription-based models, creating a recurring revenue stream. Furthermore, Willow’s computational power can significantly ramp up drug discovery and development, bringing in pharma companies to collaborate with or rely on the company’s quantum solutions.
1) Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is deeply involved in the R&D and commercialization of quantum technologies. The company remains focused on entering the quantum computing space through its Azure Quantum platform. Notably, it is a comprehensive, cloud-based quantum computing service offering developers access to quantum hardware, software, and algorithms.
Microsoft Corporation (NASDAQ:MSFT)’s Azure Quantum platform achieved numerous milestones in quantum computing. Microsoft and Atom Computing have made progress in reliable quantum computing by creating and entangling 24 logical qubits made from neutral atoms. They have demonstrated the ability to detect and correct errors, and perform computation, on 28 logical qubits. Notably, Quantum entanglement is the principle of quantum mechanics and remains a crucial component for applications of quantum computing, like cryptography and complex problem-solving.
This achievement places Microsoft Corporation (NASDAQ:MSFT)’s Azure Quantum platform as a leader in delivering reliable quantum solutions that should appeal to enterprises and researchers. Industries including pharmaceuticals, finance, energy, and logistics continue to heavily invest in quantum computing to solve problems beyond the reach of classical computing. Therefore, reliable qubits make Azure Quantum more attractive to these sectors. Furthermore, Azure Quantum complements Microsoft Corporation (NASDAQ:MSFT)’s existing cloud services. Thus, the customers using Azure for traditional computing can seamlessly integrate quantum solutions, which should fuel overall Azure adoption.
While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
