In this article, we will discuss the 11 Best Quantum Computing Stocks to Buy Right Now.
Quantum computing continues to advance rapidly, which has been helping businesses get new opportunities related to security, AI, optimization, and scientific discovery. As per PwC, the increasing recognition of quantum computing’s potential to revolutionize numerous industries has placed the momentum for significant breakthroughs. For example, quantum simulations in healthcare enable scientists to model complex molecular interactions, which helps in ramping up the discovery of new drugs and materials.
Therefore, quantum has the potential to advance complex problem-solving, speed up the scientific discovery, and lead to the development of entirely new technologies. PwC believes that quantum possesses numerous implications for operational, R&D, and security and controls.
What Lies Ahead for Quantum Computing Industry?
As per Stellar Market Research, quantum computing use cases are expected to have a hybrid operating model, representing a blend of quantum and traditional high-performance computing until around 2032. For instance, a quantum-inspired algorithm can result in improvements in traditional high-performance computers. Fortune Business Insights believes that the quantum computing market growth is expected to be fueled by advanced problem-solving, AI advancements, and global investments.
Commonwealth Scientific and Industrial Research Organisation (CSIRO) mentioned that the United Nations has designated 2025 to be the International Year of Quantum Science and Technology. Over the upcoming years, quantum chips are expected to scale up. Furthermore, the next generation of quantum processors are expected to be supported by logical qubits. Through the use of quantum simulations on normal computers, the researchers continue to develop and test numerous quantum algorithms. When the quantum hardware catches up, this can make quantum computing ready for useful applications, says the firm.
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Amidst such trends, let us now have a look at the 11 Best Quantum Computing Stocks to Buy Right Now.
A modern computer datacenter, running an advanced quantum computer system.
Our Methodology
To list the 11 Best Quantum Computing Stocks to Buy Right Now, we sifted through several online rankings to shortlist the companies catering to the broader quantum computing sector. Next, we chose the ones that are popular among the hedge funds. Finally, the stocks are ranked in ascending order of their hedge fund sentiments, as of Q4 2024.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Best Quantum Computing Stocks to Buy Right Now
11. Quantum Computing Inc. (NASDAQ:QUBT)
Number of Hedge Fund Holders: 6
Quantum Computing Inc. (NASDAQ:QUBT) is an integrated photonics company, which provides accessible and affordable quantum machines. The company has received a 5th purchase order for its thin film lithium niobate (TFLN) photonic chip foundry. The latest order is from a research group based in Canada to aid its research efforts on quantum photonics. Quantum Computing Inc. (NASDAQ:QUBT) will offer the research group with custom test structures based on its TFLN photonic integrated circuit (PIC) chip technology.
This partnership further strengthens the higher demand for TFLN’s energy efficiency and scalability, showcasing Quantum Computing Inc. (NASDAQ:QUBT)’s near-term opportunity to address real-world challenges and highlighting TFLN’s transformative potential in the areas of next-generation photonics and quantum technologies. Quantum Computing Inc. (NASDAQ:QUBT) announced that it has entered into securities purchase agreements for the purchase and sale of 8,163,266 shares of common stock in a private placement at the purchase price of $12.25 per share, which is anticipated to result in gross proceeds of $100 million (before the deduction of offering expenses). With the projected net proceeds, together with existing cash reserves, Quantum Computing Inc. (NASDAQ:QUBT) expects to have enough resources to continue to advance and expand the manufacturing and development of its photonics, thin-film lithium niobate (TFLN), and quantum technologies.
10. Arqit Quantum Inc. (NASDAQ:ARQQ)
Number of Hedge Fund Holders: 8
Arqit Quantum Inc. (NASDAQ:ARQQ) has developed QuantumCloud, which offers quantum-safe encryption keys for the secure communications. H.C. Wainwright is optimistic about the company as the firm’s analyst believes that it continues to benefit from several factors such as improvement in market conditions for small cap technology companies, like reduced rates as well as an investor desire to look for the next transformative technology. H.C. Wainwright opines that companies having exposure to quantum computing are expected to benefit from increasing investor interest in 2025 and 2026, aiding Arqit Quantum Inc. (NASDAQ:ARQQ)’s shares.
The company was awarded a multi-year enterprise license contract in the EMEA region for a government end user. Arqit Quantum Inc. (NASDAQ:ARQQ) believes that this contract is expected to result in seven figures in annual recurring revenue in total. The revenue generation is anticipated to start in the current fiscal period. The end market has been moving towards the company. Notably, recognition of the requirement for enhanced cryptography and the efficacy of Arqit Quantum Inc. (NASDAQ:ARQQ)’s symmetric key solution has increased during FY 2024. The company has now started to see the benefit in contract wins and annual recurring revenue backlog.
9. D-Wave Quantum Inc. (NYSE:QBTS)
Number of Hedge Fund Holders: 15
D-Wave Quantum Inc. (NYSE:QBTS) is engaged in developing and delivering quantum computing systems, software, and services. The company has announced a scientific breakthrough and has confirmed that its annealing quantum computer outperformed one of the world’s most powerful classical supercomputers, solving complex magnetic materials simulation problems with relevance to materials discovery. D-Wave Quantum Inc. (NYSE:QBTS)’s Chief believes that this achievement demonstrates that the company’s annealing quantum computers are now capable of solving useful problems that are over and above the reach of the world’s most powerful supercomputers.
D-Wave Quantum Inc. (NYSE:QBTS) expects its Q1 fiscal 2025 revenue to surpass $10 million as compared to $2.55 million consensus estimate. D-Wave Quantum Inc. (NYSE:QBTS) remains focused on expanding its quantum computing capabilities. Furthermore, the company has been exploring new market opportunities and strategic partnerships in a bid to enhance its competitive position. As per the company’s CFO, the company possesses the opportunity to be the first independent publicly held quantum computing company to achieve sustained profitability.
180 Degree Capital Corp., an investment management firm, recently released its Q1 2024 investor letter. Here is what the fund said:
“D-Wave Quantum Inc. (NYSE:QBTS): QBTS announced the availability of new quantum computing resources and partnerships to drive quantum computing adoption. The increase in QBTS’ stock price also allowed it to regain compliance with NYSE listing standards and the ability to tap its equity line of credit for additional capital to fund operations.
For the quarter, QBTS increased NAV by $0.09/share, or $0.9 million.”
8. Rigetti Computing, Inc. (NASDAQ:RGTI)
Number of Hedge Fund Holders: 17
Rigetti Computing, Inc. (NASDAQ:RGTI) is engaged in building quantum computers and the superconducting quantum processors. Analysts are optimistic about the company’s growth potential, demonstrating confidence in the company’s tech prowess. Alliance Global Partners analyst Brian Kinstlinger upped the price objective to $16 from $15, reiterating a “Buy” rating. The analyst has highlighted Rigetti Computing, Inc. (NASDAQ:RGTI)’s partnership with Quanta Computer. The companies have committed to invest over $100 million each over the upcoming 5 years, with both sides emphasizing their complementary strengths in a bid to develop superconducting quantum computing technologies.
Kinstlinger believes that the strategic investment by a giant tech partner like Quanta demonstrates another validation of Rigetti Computing, Inc. (NASDAQ:RGTI)’s dominant position in the quantum computing domain. Also, TD Cowen analyst, Krish Sankar, reaffirmed a “Buy” rating on the company’s stock. This analyst also opines that Quanta partnership is a positive development because of the manufacturing and financial resources related to the deal. Rigetti Computing, Inc. (NASDAQ:RGTI)’s cash, cash equivalents and available-for-sale securities totaled $217.2 million as of December 31, 2024, ensuring sufficient financing through 2027.
7. FormFactor, Inc. (NASDAQ:FORM)
Number of Hedge Fund Holders: 26
FormFactor, Inc. (NASDAQ:FORM) provides advanced testing and measurement solutions which are critical for development and scaling of quantum processors. In a positive development, the company and Delft Circuits, which is an innovator in high-density cryogenic cabling solutions, have joined hands to integrate Delft Circuits’ Cri/oFlex® product portfolio into FormFactor, Inc. (NASDAQ:FORM)’s cryogenic test systems. The partnership focuses on addressing the growing demand for scalable, high-density interconnect solutions in quantum computing, allowing the industry to cater to increased demands for computation power and efficient system interfacing.
Delft Circuits’ technology perfectly complements FormFactor, Inc. (NASDAQ:FORM)’s systems, enabling the latter to provide its customers some of the highest channel densities in the industry while, at the same time, maintaining the precision and reliability. As quantum computing progresses to commercialization, FormFactor, Inc. (NASDAQ:FORM)’s testing and cryogenic solutions are expected to see higher demand. Also, FormFactor, Inc. (NASDAQ:FORM), in collaboration with Tabor Electronics LLC, announced the Echo-5Q project, demonstrating comprehensive 5-Qubit Quantum Computer focused on research and education sectors, using a Quantum Processing Unit (QPU) offered by QuantWare. This JV demonstrates the capacity of the involved companies to strengthen the quantum computing industry via distinct technologies.
6. IonQ, Inc. (NYSE:IONQ)
Number of Hedge Fund Holders: 28
IonQ, Inc. (NYSE:IONQ) is engaged in developing quantum computers and networks. The company has announced that it reached a definitive agreement with each of SK Telecom and ID Quantique (IDQ), a leader in quantum safe networking and sensing, to acquire a controlling stake in IDQ. Along with the transaction, IonQ, Inc. (NYSE:IONQ) expects to enter into a strategic partnership focused on quantum with SK Telecom, which is the largest wireless telecommunications operator in South Korea.
Additionally, IDQ’s patent portfolio of ~300 patents and patent applications would result in the total count of granted and pending patents that IonQ, Inc. (NYSE:IONQ) owns or controls to ~900. The strategic transaction and the expertise of ID Quantique strengthens IonQ, Inc. (NYSE:IONQ)’s role as a global leader in next generation secure communications. IonQ, Inc. (NYSE:IONQ) also anticipates that the intended strategic partnership with SK Telecom significantly enhances the distribution of IonQ quantum technology, resulting in several commercial and technical opportunities.
In early January 2025, the company announced that it has completed its acquisition of substantially all of the assets of Qubitekk, Inc. The acquisition will bring Qubitekk’s advanced technology, and extensive patent portfolio into IonQ, Inc. (NYSE:IONQ)’s operations, cementing its position at the forefront of quantum networking and computing. These strategic moves form part of the company’s efforts to develop a strong foothold in the quantum networking market.
5. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 60
International Business Machines Corporation (NYSE:IBM) operates IBM Quantum, which provides cloud-based access to real quantum computers. Quantum Insider, while echoing the views of the company’s CEO Arvind Krishna, highlighted that the company believes that quantum computing will be the foundational technology. International Business Machines Corporation (NYSE:IBM)’s Chief has been projecting significant advances in error correction and coherence times by the decade’s end. The company remains focused on engineering improvements to quantum hardware, targeting to extend qubit coherence times to a full millisecond to allow complex computations.
The industries like materials science, energy, and pharmaceuticals are expected to benefit from quantum-powered discoveries, says Krishna. The increasing adoption of quantum computing across different industries is expected to create significant demand for International Business Machines Corporation (NYSE:IBM)’s quantum hardware, enterprise solutions, and cloud services. With quantum computing hardware becoming accessible and powerful, more companies are expected to leverage IBM Quantum Cloud services, aiding the revenues. The companies continue to rely on International Business Machines Corporation (NYSE:IBM) for hybrid quantum-classical computing solutions.
4. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 67
Honeywell International Inc. (NASDAQ:HON), through Quantinuum, is a leading player in the quantum computing, which continues to focus on trapped-ion hardware, industry applications and quantum software. SoftBank Corp. and Quantinuum have agreed to a wide-ranging partnership in quantum computing. Through the combination of respective strengths, the companies are expected to unlock innovative quantum computing solutions which will overcome the limitations of classical artificial intelligence (AI) and realize next-generation technologies. This alliance focuses on applying quantum computing to several industries, which can help create new market opportunities and fuel technological innovation.
As a result of ownership in Quantinuum, Honeywell International Inc. (NASDAQ:HON) is expected to benefit from strategic initiatives through expansion of presence in the quantum computing market, and enhancing the technological capabilities. Also, Quantinuum and RIKEN announced the successful on-premise installation of Quantinuum’s “Reimei” quantum computer at RIKEN’s Wako campus situated in Saitama, Japan. With businesses adopting quantum-enhanced AI, materials discovery, and cybersecurity, the demand for high-quality quantum hardware and software is expected to increase. Honeywell International Inc. (NASDAQ:HON), given its majority holding, is expected to benefit from Quantinuum’s revenue growth.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) developed cuQuantum, which is a software development kit accelerating quantum circuit simulations with the help of its powerful GPUs. Also, NVIDIA® CUDA-Q happens to be a first-of-its-kind platform for hybrid quantum-classical computers, allowing integration as well as programming of QPUs, quantum emulation, GPUs, and CPUs in one system. NVIDIA Corporation (NASDAQ:NVDA) has announced that it is working with Google Quantum AI to accelerate the design of its next-generation quantum computing devices through simulations powered by NVIDIA CUDA-Q™ platform.
As per Guifre Vidal, research scientist from Google Quantum AI, the development of commercially useful quantum computers is possible only if it can scale up quantum hardware while, at the same time, keeping noise in check. Notably, Google using the CUDA-Q platform exhibits the central role GPU-accelerated simulations have in advancing quantum computing in a bid to help solve real-world problems. NVIDIA Corporation (NASDAQ:NVDA) has been integrating quantum computing into the AI ecosystem, enabling developers to leverage quantum-inspired AI algorithms utilising its GPUs.
Therefore, research and AI companies are expected to increase spending on NVIDIA Corporation (NASDAQ:NVDA)’s quantum-powered AI solutions, enhancing data center and AI market share. With the expansion of quantum across industries, NVIDIA Corporation (NASDAQ:NVDA)’s cuQuantum SDK, alliances with quantum hardware companies, and AI integration can cement its critical role in hybrid quantum-classical computing, aiding revenue growth.
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 234
Alphabet Inc. (NASDAQ:GOOGL) is a leading player in the quantum computing industry through Google Quantum AI, which is its dedicated research division having emphasis on developing quantum processors, applications and algorithms. Furthermore, the company announced Willow, which is the latest quantum chip. Willow managed to perform a standard benchmark computation in less than 5 minutes which will take today’s fastest supercomputers 10 septillion years. With the help of Willow, Google’s researchers mentioned that adding more physical qubits to a quantum processor made it less error-prone, which means it is reversing the typical phenomenon.
Alphabet Inc. (NASDAQ:GOOGL)’s announcement of Willow is expected to significantly enhance computing power and AI capabilities, resulting in allowing Google to differentiate its cloud services with the help of advanced hardware offerings. As we know, one of the critical problems with quantum computing is that it is error-prone, mainly with the more qubits it uses. Alphabet Inc. (NASDAQ:GOOGL) seems to be addressing this issue, saying Willow has the potential to exponentially reduce errors as it scales up using more qubits. While quantum-powered AI can strengthen the company’s AI leadership, quantum cybersecurity solutions are expected to protect Alphabet Inc. (NASDAQ:GOOGL)’s ecosystem.
Qualivian Investment Partners, an investment partnership focused on long-only public equities, published the Q3 2024 investor letter. Here is what the fund said:
“Alphabet Inc. (NASDAQ:GOOGL): Q2 2024 revenues and EPS beat expectations, with total revenues growing 14%, Search ad revenues growing 14%, YouTube ads growing 13%, and Google Cloud revenues growing 29%. Revenue growth in the quarter constituted a continued sequential improvement from earlier quarters in the year, suggesting a continued rebound in Alphabet’s core business except for YouTube ad revenues, which missed expectations and showed deceleration in the growth rate as compared to Q1 when it grew 21%. Operating margins improved by 310 bps vs. the same quarter last year.
Management continued to highlight developments with their generative AI program, which is seen as a foundational platform with opportunities across their businesses but particularly in search and cloud. However, this comes with material capex investment well ahead of the expected economic benefits from Gen AI, and the level of spending is leading investors to worry about the ROI on that spend for Alphabet, as well as the other hyperscalers (Microsoft and Amazon). We continue to have confidence in Alphabet’s ability to generate strong revenue, earnings, and cash flow growth well above the S&P 500’s in the years to come and view it as a core holding for the long term.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) remains involved in the quantum computing business via its Azure Quantum platform and the development of topological qubits. The company has rolled out Majorana 1, the world’s first quantum chip powered by a new Topological Core architecture. The company expects that it will realize quantum computers capable of solving meaningful, industrial-scale problems in years, not decades. It leverages the world’s first topoconductor, a breakthrough type of material, that can observe and control Majorana particles to produce more reliable and scalable qubits. The topological qubits are projected to have increased stability and lower error rates, which can make Microsoft Corporation (NASDAQ:MSFT)’s hardware more scalable.
Furthermore, integrating Majorana 1 into the Azure Quantum can make it the cloud provider that has topological qubit-based quantum computing. Also, Microsoft Corporation (NASDAQ:MSFT) has partnered with Quantinuum and Atom Computing to reach scientific and engineering breakthroughs. Such alliances are expected to enhance Microsoft Corporation (NASDAQ:MSFT)’s Azure Quantum platform, hardware research, and hybrid quantum-cloud solutions. Also, these partnerships can accelerate error correction as well as fault tolerance, which happens to be a critical step focusing on practical quantum computing.
Bretton Capital Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Microsoft Corporation (NASDAQ:MSFT) has become the go-to provider of computing services for many emerging AI companies, and its franchise is much more diversified than Alphabet’s, making it a net beneficiary of the AI arms race. Demand for its cloud computing services continued to grow, and the rest of its business (Orce, Windows, Xbox, GitHub, LinkedIn) are also thriving, sending earnings per share up 22% while the stock returned 13%.”
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 time frame. 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.
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