We recently published a list of 11 Best Quantum Computing Stocks to Buy Right Now. In this article, we are going to take a look at where D-Wave Quantum Inc. (NYSE:QBTS) stands against other 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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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).
A futuristic datacenter with servers and high-tech equipment, signifying the company’s cutting-edge digital technology.
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.”
Overall, QBTS ranks 9th on our list of best quantum computing stocks to buy right now. While we acknowledge the potential of QBTS 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 QBTS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
