Quantum computing could be a game-changer for most major industries. It could also create a big opportunity for some of the top quantum computing stocks to buy along the way.
For one, we know they can handle difficult calculations in a matter of hours, if not minutes that would take traditional computers years to solve. Better, the market could be worth about $5.3 billion by 2029, according to MarketsandMarkets, from $1.3 billion today.
Fortune Business Insights said the market could explode from about $928.8 million to more than $6.5 billion by 2030.
Either way, quantum computing could get explosive.
“Quantum technology could create value worth trillions of dollars within the next decade,” consulting firm McKinsey stated in a recent study. “Accelerating technological breakthroughs, increasing investment flows, startup proliferation and promises of capable quantum systems by 2030 signal it’s time for business leaders to begin planning their quantum computing strategies.”
In short, we could look at another massive opportunity with quantum computing. Here are three ways to trade its potential.
IonQ (IONQ)
After finding strong support at $7, IonQ (NYSE:IONQ) is now consolidating at around $9 a share. From here, given the potential of quantum computing, I’d like to see it rally back to $15.
That won’t happen overnight, but it could with a good deal of patience. Helping, the company just posted a first-quarter loss of $0.19, which beat by $0.06 — revenue of $7.6 million – up 77.2% year over year – beat by $600,000. Also, for the full year, revenue is expected to be between $37 million and $41 million. That’s compared to estimates of $39.99 million, though.
In addition, the company has just announced a collaboration with Oak Ridge National Laboratory (ORNL) to explore how quantum technology can be used to modernize the power grid.
After all, according to an IONQ press release, “The U.S. power grid is challenged by increased demand and a proliferation of energy sources, increasing the need for innovative solutions that can address both optimization and security challenges.”
Defiance Quantum ETF (QTUM)
The last time I mentioned the Defiance Quantum ETF (QTUM), it traded at about $60 on May 7.
I noted, “After finding strong support at around $55,06, the QTUM is starting to rebound. Last trading at $59.92, I’d like to see it retest $63 a share near term.”
Now at $61.85, if it can break above $63.26, I’d like to see it closer to $70 a share.
With an expense ratio of 0.40%, the QTUM ETF “provides exposure to companies on the forefront of machine learning, quantum computing, cloud computing and other transformative computing technologies,” according to Defiance ETFs.
Some of its top holdings are MicroStrategy (NASDAQ:MSTR), Nvidia (NASDAQ:NVDA), Micron Technology (NASDAQ:MU), Coherent (NYSE:COHR), Applied Materials (NASDAQ:AMAT) and Rigetti Computing (NASDAQ:RGTI).
Again, ETFs are a great way to diversify your portfolio at a low cost.
D-Wave Quantum (QBTS)
Also, keep an eye on D-Wave Quantum (NYSE:QBTS).
Analysts are bullish on the stock, with Needham reiterating its buy rating with a $4 price target. The firm cited QBTS’ consistent growth in bookings for eight straight quarters, its two new major multi-year orders, and the introduction of its new fast-anneal feature.
In addition, the company also just renewed its multiyear agreement with the University of Southern California. As noted in the press release, “Under the agreement, the USC Viterbi School of Engineering will continue to house a D-Wave state-of-the-art Advantage™ quantum computer, facilitating ongoing exploration and adoption of annealing quantum computing solutions for businesses, researchers, and government.”
Earnings weren’t too shabby, either. In its first quarter, company revenue of $2.5 million was a 56% jump year over year. Bookings were $4.5 million, an increase of 54% yearly. And its revenue from commercial clients increased by $2.2 million, or 51%.
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.
