In this article, we discuss the 5 best quantum computing stocks to invest in. If you want to see our detailed analysis of these stocks, go directly to the 11 Best Quantum Computing Stocks To Invest In.
5. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 87
Micron Technology, Inc. (NASDAQ:MU) is a technology company based in Idaho that engages in the provision of innovative memory and storage solutions. The company is one of the leaders in chip design and manufacture, providing essential components and technology for quantum computers. Ranked fifth on our list of the 11 best quantum computing stocks to invest in, Micron Technology, Inc. (NASDAQ:MU) has a market capitalization of $78.94 billion.
At the end of the second quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $6.3 billion in Micron Technology (NASDAQ:MU). This is compared to 100 hedge funds in the preceding quarter with stakes worth $7.6 billion.
On September 29, JPMorgan analyst Harlan Sur reiterated an Overweight rating on Micron Technology, Inc. (NASDAQ:MU) with a $100 price target, stating that the end-market demand for PC remained healthy.
For the fiscal fourth quarter of 2021, Micron Technology, Inc. (NASDAQ:MU) reported earnings per share at $2.42, crossing consensus estimates by $0.08. The company also declared revenues amounting to $8.27 billion, surpassing estimates by $61.58 million.
Out of the hedge funds being tracked by Insider Monkey, Boston-based Arrowstreet Capital is a leading shareholder in Micron Technology, Inc. (NASDAQ:MU) with over 14.8 million shares worth more than $1.26 billion.
4. Alibaba Group Holding Company (NYSE:BABA)
Number of Hedge Fund Holders: 146
Alibaba Group Holding Limited (NYSE:BABA) is a multinational technology company that specializes in e-commerce, retail and cloud computing. The China-based tech and retail giant ranks fourth on our list of the 11 best quantum computing stocks to invest in.
The company is one of the Chinese leaders in the race for quantum computing supremacy, engaged in “full stack” quantum businesses, offering access to quantum computing through the cloud alongside designing their own suite of algorithms, quantum computing hardware, software, and consulting services.
The company last released its quarterly earnings report on August 3, with reported earnings per share at $2.57, beating market estimates by $0.35. The revenue for the quarter was reported at $31.80 billion, an increase of 43.04% on a year-over-year basis.
According to our database, 146 hedge funds out of the 873 tracked by Insider Monkey held stakes in Alibaba Group Holding Limited (NYSE:BABA), worth roughly $16.79 billion. This is compared to 135 hedge funds in the previous quarter with a total stake value of approximately $15.4 billion.
On September 6, KGI Securities initiated coverage of Alibaba Group Holding Limited (NYSE:BABA) with a Neutral rating and $26.33 price target on the company’s shares.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Alibaba Group Holding Limited (NYSE:BABA) with 14.1 million shares worth more than $3.2 billion.
3. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 155
Alphabet Inc. (NASDAQ:GOOG) is a multinational conglomerate that operates as a diversified technology company. Headquartered in California, the company owns and manages a vast number of internet-based platforms. Ranked third on the list of the 11 best quantum computing stocks to invest in, Alphabet Inc. (NASDAQ:GOOG) has a market capitalization of $1.86 trillion.
Alphabet Inc. (NASDAQ:GOOG)’s Sycamore superconducting processor, with 53 qubits, is one of the worlds most notable quantum computer processors. Developed by the company’s Artificial Intelligence Division, the company’s quantum computer solved a calculation in 200 seconds back in 2019, which, according to Alphabet Inc. (NASDAQ:GOOG), would take a traditional supercomputer over 10,000 years to complete. By the year 2029, Alphabet Inc. (NASDAQ:GOOG) looks to build a fully functioning, useful quantum computer.
By the end of the second quarter of 2021, 155 hedge funds out of the 873 tracked by Insider Monkey held stakes in Alphabet Inc. (NASDAQ:GOOG), worth roughly $145.5 billion, compared to 159 hedge funds in the preceding quarter, with stakes worth approximately $29 billion.
On September 17, Jefferies analyst Brent Thill raised his price target on Alphabet Inc. (NASDAQ:GOOG) to $3,325 from $3,150, and kept a Buy rating on the shares of the company.
Out of the hedge funds being tracked by Insider Monkey, Florida-based Ivy Lane Capital is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG) with 9,700 shares worth more than $24.3 billion.
In its Q2 2021 investor letter, Mawer Investment Management mentioned Alphabet Inc. (NASDAQ:GOOG). Here is what the fund said:
“Many higher growth companies reported strong results amid the pick-up in broad economic activity including Alphabet. These higher growth companies tend to have increased sensitivity to a change in discount rates and were supported as long-term interest rates stabilized over the period.”
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 238
Microsoft Corporation (NASDAQ:MSFT) is a multinational technology company that specializes in the production of computer software, consumer electronics and computer related services. Headquartered in Washington, the tech titan comes in at second on our list of the 11 best quantum computing stocks to invest in.
Microsoft Corporation (NASDAQ:MSFT), through its Azure Quantum platform, provides a cloud service of quantum partners and technologies for running quantum computing programs or solving optimization problems.
On September 17, Tigress Financial analyst Ivan Feinseth raised his price target on Microsoft Corporation (NASDAQ:MSFT) to $366 from $303, and kept a Buy rating on the shares.
By the end of the second quarter of 2021, 238 hedge funds out of the 873 tracked by Insider Monkey held stakes in Microsoft Corporation (NASDAQ:MSFT), worth roughly $62.46 billion, compared to 251 hedge funds in the previous quarter, with stakes worth approximately $58.9 billion.
Out of the hedge funds being tracked by Insider Monkey, Florida-based Ivy Lane Capital is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT) with 86,000 shares worth more than $23.29 billion.
In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 271
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational company that specializes in e-commerce, cloud computing, digital streaming and artificial intelligence. The e-commerce and technology giant is ranked first on our list of the 11 best quantum computing stocks to invest in.
Actively investing in the quantum computing space, Amazon.com, Inc. (NASDAQ:AMZN), through its Amazon Braket, provides a fully managed quantum computing service platform that aids researchers and developers in getting started with the technology to accelerate Research and Development.
Amazon.com, Inc. (NASDAQ:AMZN) last released its earnings report on July 28, 2021, with reported earnings per share at $15.12, beating estimates of $12.22. The company also reported revenues of $113.08 billion, falling short of the estimated revenues by $2.01 billion. Earnings for the e-commerce giant are expected to grow by 29.57% in the coming year.
There were 271 hedge funds in the database of Insider Monkey that held stakes in Amazon.com, Inc. (NASDAQ:AMZN) worth $60.49 billion in the second quarter of 2021, compared to 243 funds in the first quarter with total stakes amounting to approximately $50.4 billion.
On September 30, RBC Capital analyst Brad Erickson initiated coverage of Amazon.com, Inc. (NASDAQ:AMZN) with an Outperform rating and $4,150 price target.
In the Q2 2021 investor letter of L1 Capital, the fund announced Amazon.com, Inc. (NASDAQ:AMZN) as one of its leading contributors. Here is what the fund said:
“Amazon flipped from being the largest detractor from portfolio performance in the March 2021 quarter, to one of the leading contributors in the June 2021 quarter. We took advantage of negative near-term sentiment in the March 2021 quarter to add to our Amazon investment. We continue to view Amazon as one of the best positioned businesses globally, with its share price still not reflecting fair value.”
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