5 Best Quantum Computing Stocks To Buy Now

In this article, we discuss 5 best quantum computing stocks to buy now. If you want to read our detailed discussion on the quantum computing industry, head directly to 11 Best Quantum Computing Stocks To Buy Now. 

5. Honeywell International Inc. (NASDAQ:HON)

Number of Hedge Fund Holders: 61

Honeywell International Inc. (NASDAQ:HON) is a globally operating diversified technology and manufacturing company. Honeywell Quantum Solutions has created some of the most advanced quantum computers worldwide, utilizing trapped-ion technology. Honeywell International Inc. (NASDAQ:HON) is one of the top quantum computing stocks to buy. On September 29, the company declared a quarterly dividend of $1.08 per share, a 4.9% increase from its prior dividend of $1.03. The dividend is distributable on December 1, to shareholders of record on November 10. 

According to Insider Monkey’s second quarter database, 61 hedge funds were bullish on Honeywell International Inc. (NASDAQ:HON), compared to 58 funds in the last quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the leading stakeholder of the company, with 1.95 million shares worth $406.3 million. 

Here is what ClearBridge Investments said about Honeywell International Inc. (NASDAQ:HON) in its Q1 2023 investor letter:

“We also used the strength in the market to sell our position in diversified industrial company Honeywell International Inc. (NASDAQ:HON). While a recovery in its commercial aerospace business remains a tailwind, we believe the valuation is extended and industrial demand continues to soften.”

4. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 71

Intel Corporation (NASDAQ:INTC) is a global company that specializes in the design, development, manufacturing, and sale of computing and related products. The company has introduced Tunnel Falls, its most advanced silicon spin qubit chip, which represents a major move towards creating a commercial quantum computing system. Intel Corporation (NASDAQ:INTC) is also providing this chip to the quantum research community to encourage progress and innovation in the field. It is one of the premier quantum computing stocks to monitor. 

On October 16, Citi analysts highlighted Intel Corporation (NASDAQ:INTC) as one of the hot topics among investors, especially with optimism surrounding Intel’s shift toward focusing on its foundry ambitions. They expressed doubts about Intel Corporation (NASDAQ:INTC)’s success in the foundry market, competing with companies like Taiwan Semiconductor and GlobalFoundries. Nevertheless, if the company manages to regain its manufacturing leadership, it could boost Citi’s confidence in the stock.

According to Insider Monkey’s second quarter database, Intel Corporation (NASDAQ:INTC) was part of 71 hedge fund portfolios, compared to 68 in the prior quarter. 

ClearBridge Large Cap Value Strategy made the following comment about Intel Corporation (NASDAQ:INTC) in its Q3 2023 investor letter:

“We also added to our position in Intel Corporation (NASDAQ:INTC) to take advantage of signs that it continues to make progress on its goal of regaining technology leadership. Intel appears to be executing its technology/product roadmap; the company is on track to ramp up PC and server products over the next 12 months on advanced manufacturing nodes that we believe will be more competitive with chief rival Advanced Micro Devices. We also see green shoots in the PC and server markets, with an increasing possibility of a cyclical recovery in both end markets in 2024.”

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 152

Alphabet Inc. (NASDAQ:GOOG)’s Google Quantum AI is exploring the boundaries of quantum computing. Its software and hardware are tailored for the creation of innovative quantum algorithms aimed at addressing real-world challenges in the near future. Alphabet Inc. (NASDAQ:GOOG) is one of the top quantum computing stocks to consider. As the S&P 500 struggled to maintain a positive trend for the fifth consecutive trading day, Alphabet Inc. (NASDAQ:GOOG) was one of the stocks to reach a new 52-week high on October 12. 

According to Insider Monkey’s second quarter database, Alphabet Inc. (NASDAQ:GOOG) was found in 152 hedge fund portfolios, compared to 155 in the preceding quarter. Harris Associates is the largest stakeholder of the company, with a position worth $3.2 billion. 

Oakmark Global Select Fund made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2023 investor letter:

“Alphabet Inc. (NASDAQ:GOOG)(U.S.) was the top contributor for the fiscal year. Alphabet reported multiple strong sets of earnings releases over the past year, and its results generally exceeded consensus estimates across key metrics. Most recently, search revenue growth accelerated from 5% to 6.5% sequentially in the second quarter, a notable development given lingering economic uncertainty and broader advertising weakness. Cloud growth remained at 30%, stable versus the previous quarter, despite continued headwinds from customers optimizing cloud usage. Margin progression also continued, and cloud margins reached 5%. CFO Ruth Porat emphasized that the largest impact from the company’s cost[1]saving initiatives will not be felt until 2024. YouTube continues to prioritize its Shorts segment, which is experiencing strong viewership growth. Although this is a near-term revenue headwind, we believe Shorts’ monetization will accelerate over time. Addressing the year’s hottest topic, CEO Sundar Pichai said Alphabet is an “AI-first company” that is “extremely well-positioned as AI reaches an inflection point.” At Alphabet’s annual developer conference in May, it showcased an impressive array of new AI-powered consumer tools to be rolled out over the course of the year. Investors reacted positively to these presentations, which highlighted the company’s impressive innovations in AI technologies. Overall, we believe the company is positioned well to reap the benefits of the scale of its search business and years of its investment into AI capabilities. We also appreciate that the company is undergoing a transformation on how it views cost discipline and efficiency.”

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 175

NVIDIA Corporation (NASDAQ:NVDA), on March 21, 2023, introduced a new system made with Quantum Machines. It is designed for researchers who want to work with very fast quantum-classical computers. This system is called NVIDIA DGX Quantum, and it’s the first of its kind to combine powerful computing with advanced quantum control. NVIDIA Corporation (NASDAQ:NVDA) is one of the best quantum computing stocks to invest in. 

On October 15, BofA analyst Vivek Arya, with a Buy rating and a $650 price target on NVIDIA Corporation (NASDAQ:NVDA), predicted that the company will release chip sets for Arm training, Arm inference, x86 training and inference, and artificial intelligence infrastructure in 2024 and 2025. This information is based on the company’s updated product pipeline. Furthermore, the analyst believes that NVIDIA Corporation (NASDAQ:NVDA) may be one of the first companies to introduce AI accelerators on 3-nanometer processors, and possibly even 2-nanometer processors, which are considered more advanced than larger processors. 

According to Insider Monkey’s second quarter database, 175 hedge funds held stakes in NVIDIA Corporation (NASDAQ:NVDA), compared to 132 funds in the last quarter. Rajiv Jain’s GQG Partners is a prominent stakeholder of the company, with nearly 14 million shares worth $5.9 billion. 

Harding Loevner Global Equity Strategy made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2023 investor letter:

NVIDIA Corporation (NASDAQ:NVDA) has been the biggest beneficiary this year in terms of its stock run and projected revenue gains. More companies- including, perhaps, some not yet in existence-will certainly join the ranks over time.

In the meantime, NVIDIA has emerged as the unrivaled global leader in providing the technologies at the center of the Al arms race. NVIDIA’s competitive advantage is the result of investments that began two decades ago, when it recognized an early opportunity to repurpose its video-game graphics chips for the heavy-load computing done in scientific research. This led management to expand the GPU business. It also spent years and significant resources developing a free software platform that’s exclusive to its chips called CUDA that allows developers to easily program its GPUs for a variety of computationally intensive applications. Researchers then began using both NVIDIA’s chips and CUDA to train the human-brain-inspired neural networks that power Al models.

Now, due to an explosion of demand related to generative Al and LLMs from across its customer base, NVIDIA projects that data-center revenue for its fiscal second quarter ending in July will surge to US$11 billion. Not only is that more than double last quarter’s total, but the forecast also shattered the average analyst estimate that called for about US$7 billion. Taking advantage of the stock’s meteoric rise, we reduced our holding (it has risen tenfold since we first purchased in 2018)…” (Click here to read the full text)

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 300

Microsoft Corporation (NASDAQ:MSFT) Azure Quantum is working on making improvements in every aspect of quantum computing, from the software and applications to the control and the actual hardware. The company also aims to develop topological qubits that are more reliable and can be used in powerful quantum computers. Microsoft Corporation (NASDAQ:MSFT) is one of the best quantum computing stocks to invest in. On October 16, Microsoft initiated a program where eligible holders can swap their Activision Blizzard notes for up to $3.65 billion worth of new notes and cash.

According to Insider Monkey’s second quarter database, 300 hedge funds were long Microsoft Corporation (NASDAQ:MSFT), up from 289 funds in the last quarter. Bill & Melinda Gates Foundation Trust held the biggest position in the company, comprising 39.2 million shares valued at $13.3 billion. 

ClearBridge Value Equity Strategy made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q2 2023 investor letter:

“We initiated a small position in Microsoft Corporation (NASDAQ:MSFT) during the quarter, which may seem surprising given our concerns about index concentration. However, we seized the opportunity on a compelling entry point below our business value estimate, due to an anticipated acceleration of demand for Microsoft’s Azure cloud business and incremental revenues from integration of Microsoft’s AI Copilot program into its office platform. We believe this could support double-digit growth, while simultaneously solidifying Microsoft’s competitive position as an AI winner. Even as a small position, we believe Microsoft provides a large portfolio construction benefit given low correlation to the rest of the portfolio.”

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