Much like the artificial intelligence stock boom, we could see a similar rally with some of the top quantum computing stocks to buy. Quantum computing allows us to solve problems far too complex for your average computer, within minutes, or even seconds.
In fact, it may be able to help speed up solutions for machine learning, cybersecurity, medical treatments, the law, and education. Most exciting is its potential use in drug discovery. According to Medriva.com, “The pharmaceutical industry’s quest for new drugs is both vital and incredibly challenging, involving the screening of millions of compounds and rigorous testing.”
However, with quantum computing, the industry could “accelerate the identification and development of new pharmaceuticals by efficiently simulating molecular interactions on a quantum level,” they added.
Can you imagine if quantum computing helped cure cancers?
No wonder governments all over the world are pledging billions to get quantum computing up and running in the next decade, according to the State of Quantum 2024 report.
With that, here are just a few top quantum computing stocks to buy and hold today.
D-Wave Quantum (QBTS)
The last time I mentioned D-Wave Quantum (NYSE:QBTS), it traded at about 90 cents. At the time, I noted, “Most recently, it inked a deal with Deloitte to speed up quantum computing adoption for governments and companies all over Canada. It’s even been working with Deloitte on transportation and national security issues in the U.S., too. Even better, the company is seeing quarter-over-quarter, and year-over-year growth in revenue, and customer bookings.”
By Feb. 20, it was up to $2.17. Now at $1.43, I still like it long-term.
Fueling the upside, the company also just announced the availability of its 1,200+ Qubit Advantage2 prototype. According to the company’s site, the new tool “demonstrates significant performance gains on hard optimization problems and is expected to be particularly powerful for new use cases such as machine learning.”
Helping, as noted in the company’s investor deck, 80% of companies plan to increase their use of quantum computing over the next two to three years. Also, nearly 31% of companies have already abandoned complex problems they face because of the time to solve them.
Rigetti Computing (RGTI)
Another one of the top quantum computing stocks to buy is Rigetti Computing (NASDAQ:RGTI).
Over the last few weeks, the RGTI stock popped from about 95 cents to a high of $2.20. While it’s starting to pull back on profit-taking, RGTI is another hot quantum computing stock to buy and hold for the long haul.
Helping, analysts at Alliance Global Partners just initiated coverage of the RGTI stock with a buy rating, with a price target of $3.50.
“There is a race to achieve quantum advantage and as the only company to publicly report multiple sales of a quantum computer at 99% fidelity,” the firm said, as quoted by TheFly.com. “The firm estimates revenue of $14.3M in 2024 and $21M in 2025, adding that it expects the inflection points to be in 2026 and 2027.”
We’ll get a better idea of how RGTI is doing when it posts fourth quarter and full year 2023 results on March 14.
In addition, the company and Riverlane, a leader in quantum error correction technology just “announced their participation in a project led by the US Department of Energy’s Oak Ridge National Laboratory to explore the challenges of integrating a quantum computer with a large-scale, supercomputing center,” as noted in a recent press release.
Defiance Quantum ETF (QTUM)
Or, if you just want to make life easier for yourself, you can just invest in the Defiance Quantum ETF (NYSEARCA:QTUM). With this ETF, you can diversify with 71 quantum computing and machine learning-related stocks for less than $62 a share.
Better, since bottoming out in late October around $44.25, the QTUM ETF is now up to $61.42. From here, I’d like to see it closer to $70, even $80 given the strong appeal of quantum computing and machine learning stocks.
With an expense ratio of 0.40%, the Defiance Quantum fund provides exposure to quantum computing, artificial intelligence, and machine learning stocks, with holdings in Intel (NASDAQ:INTC), Nvidia (NASDAQ:NVDA), MicroStrategy (NASDAQ:MSTR), Rigetti Computing, Advanced Micro Devices (NASDAQ:AMD), and Applied Materials (NASDAQ:AMAT) to name a few. Again, as we note with exchange-traded funds, it’s always better to be well diversified, especially with strong up-and-coming markets like quantum computing.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
