5 Best Quantum Computing Stocks To Buy

In this article, we will take a look at the 5 best quantum computing stocks to buy. If you want to see more stocks in this selection, go to the 10 Best Quantum Computing Stocks To Buy.

5. Rigetti Computing, Inc. (NASDAQ:RGTI)

Number of Hedge Fund Holders: 16

Rigetti Computing, Inc. (NASDAQ:RGTI) is a Berkeley, California-based company involved in developing superconducting quantum processors and quantum computers. Furthermore, the company has its own Quantum Cloud Services (QCS) platform that connects its machines to hybrid, private and public clouds. The company went public in October 2021 following a merger with SPAC.

In a joint statement on December 6, Strangeworks, Inc. and Rigetti Computing, Inc. confirmed that Strangeworks would make two quantum machine learning (QML) programs from Rigetti usable on its network. These new QML applications are created to accelerate the creation of applications for classification and regression issues and are tuned specifically for use with Rigetti Computing, Inc.’s (NASDAQ:RGTI) quantum computers.

Quinn Bolton at Needham gave Rigetti Computing, Inc. (NASDAQ:RGTI) stock a target price of $3, along with a Buy rating in a research report published on November 15. The analyst highlighted that Rigetti Computing, Inc. (NASDAQ:RGTI) had taken a beating due to economic uncertainty and the transition of the company’s CEO. However, the current stock price reflects the net cash position of the company only without any consideration of the potential of the underlying business model.

For FY22, Rigetti Computing, Inc. (NASDAQ:RGTI) anticipates total revenues to range from $12.0 million to $13.0 million. The expected revenue includes $4.0 million in contracts that are now being discussed with a government agency. Even though the contractual procedure has taken more time than expected, the company is making strides in the discussions and anticipates closing the deal by the end of the current fiscal year.

4. Honeywell International Inc. (NASDAQ:HON)

Number of Hedge Fund Holders: 53

Honeywell International Inc. (NASDAQ:HON) is a Charlotte, North Carolina-based diversified industrials company with exposure in aerospace, automation, productivity, buildings, and chemicals.

The company manufactures and sells Honeywell System Model H1 quantum computing technology commercially. The computer is completely accessed from the cloud platform on a monthly service for eight and 16 hours of daily usage. Honeywell International Inc. (NASDAQ:HON) is the parent company of Quantinuum, the biggest integrated quantum computing entity globally. The company anticipates the size of the quantum computing industry to surpass $1 trillion in the coming years. Honeywell International Inc. (NASDAQ:HON) is working on overcoming processing errors as quantum computers have a high sensitivity to electromagnetic interference. Analysts think Honeywell International Inc.’s (NASDAQ:HON) strong growth prospects make it one of the best quantum computing stocks to buy. The stock also offers an annual forward dividend yield of 1.88% as of December 6.

Adage Capital Management raised its stake in Honeywell International Inc. (NASDAQ:HON) by 103% during Q3 2022.

3. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 69

Intel Corporation (NASDAQ:INTC) is a Santa Clara, California-based company known for producing semiconductor chips globally.

Intel Corporation (NASDAQ:INTC) is aggressively working on gaining supremacy in the quantum computing industry and intends to achieve the capability to mass produce quantum computing chips in the near future. In October 2022, Intel Corporation (NASDAQ:INTC) reached a key milestone in research related to the manufacturing of quantum computing-related chips. Through its research, Intel Corporation (NASDAQ:INTC) established that it could manufacture stable quantum dots in a controlled environment in its existing facilities. The company has made significant advancements in silicon spin qubit fabrication utilizing its transistor fabrication method, making it one of the best quantum computing stocks to invest in. Intel Corporation (NASDAQ:INTC) also offers an annual forward dividend yield of 4.96% as of December 6.

ClearBridge Investments shared its long-term bullish outlook on Intel Corporation (NASDAQ:INTC) in its Q3 2022 investor letter. Here’s what the firm said:

“Also on the detractor side, Intel Corporation (NASDAQ:INTC) delivered a disappointing revenue miss and lowered full-year revenue and earnings guidance as COVID-19-driven demand for PCs abated (where Intel enjoys half its sales) and a delay in its flagship Sapphire Rapids CPU hurt its data center business. Despite these issues, we still believe Intel is an economically sensitive turnaround story with substantial upside.”

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 89

NVIDIA Corporation (NASDAQ:NVDA) is a Santa Clara, California-based company known for manufacturing leading graphic processing units (GPUs) and its related software and services.

NVIDIA Corporation (NASDAQ:NVDA) has developed the first-of-its-kind Quantum Optimized Device Architecture (QODA) that intends to make quantum computing more accessible by providing a hybrid programming environment with classical and quantum capabilities. NVIDIA Corporation (NASDAQ:NVDA) has partnered with Quantinuum to develop applications based on its platform. The company is currently focused on aiding developers in simplifying the coding task on quantum computers by employing its GPUs. Programming in a quantum computing environment is a very challenging task, and NVIDIA Corporation (NASDAQ:NVDA) is playing a bridging role between the roles of classical computers and quantum computers.

Baron Funds shared its outlook on one of the best quantum computing stocks in its Q3 2022 investor letter. Here’s what the firm said:

“NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor company and a leader in gaming and accelerated computing. NVIDIA is powering the growth of AI from the data center to the edge. Shares detracted due to inventory right sizing in NVIDIA’s gaming segment coupled with the broader market sell-off in growth stocks. Given NVIDIA’s end-to-end AI platform and its leading market share in gaming, data centers, and autonomous machines, along with the size of these markets, we believe the company can sustain its growth trajectory. See further discussion of NVIDIA in the top net purchases section below.

During the third quarter, we took advantage of its stock sell-off to add to NVIDIA Corporation, a fabless semiconductor mega cap that is a global leader in gaming cards and accelerated computing hardware and software. The sell-off was driven by a near-term inventory correction in gaming as a result of a COVID-related pull forward in demand as well as the shift in the Ethereum cryptocurrency from proof-of-work to proof-of-stake. Additionally, investors are concerned over the potential slowdown in data center revenues as a result of a weaker macroeconomic environment as well as the recently announced limitations on semiconductor shipments to China. Despite the near-term uncertainty, we believe that NVIDIA’s end-to-end AI platform and its leading market share in gaming, data centers, and autonomous machines, along with the size of these markets, would enable the company to benefit from durable growth for years to come and therefore view the stock price where we added shares as a compelling value for long-term investors. With demand for computing power doubling every one to two years, and Moore’s Law slowing down, there is more need for computing than ever. At the same time, “near free” supply growth (that was possible thanks to Moore’s Law) has slowed dramatically. NVIDIA’s accelerated architecture, with parallel computing at scale, answers that need.”

Of the 920 hedge funds in Insider Monkey’s database as of Q3 2022, NVIDIA Corporation (NASDAQ:NVDA) was held by 89 hedge funds.

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 269

Microsoft Corporation (NASDAQ:MSFT) is a Redmond, Washington-based diversified big tech company. The company is at the first position on our list of the 10 best quantum computing stocks to buy.

The company led by Satya Nadella has developed an application known as the Azure Quantum Resource Estimator. The application provides an estimated computing power required to execute a quantum algorithm within a reasonable period. The quantum bit or qubit can be either a zero or a one at the same time and is different from classical computing based on the binary system. Microsoft Corporation (NASDAQ:MSFT) has also achieved the key milestone of developing a topological qubit that ensures more stable and faster processing of data. Microsoft Corporation’s (NASDAQ:MSFT) annual forward dividend yield stands at 1.07% as of December 6.

Here’s what Diamond Hill Capital said about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2022 investor letter:

“Also among our bottom contributors were media and technology giant Alphabet, software and IT services provider Microsoft Corporation (NASDAQ:MSFT) and insurance company American International Group (AIG). Microsoft shares declined in Q3, along with other tech companies, as rising interest rates impacted the near-term outlook. We expect the business to continue to generate strong revenue growth and benefit from operating leverage. Microsoft’s cloud computing services business, Azure, is generating robust growth, confirming its competitive positioning.”

You can also take a peek at the 12 Best Augmented Reality Stocks To Buy and 12 Monthly Dividend Stocks Under $10.

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