Another week, another list for one of the stock market’s hottest sectors in 2023: quantum computing. Though generative artificial intelligence has taken up most of the attention in 2023 for its profound abilities to compile information and present it in a digestible manner, quantum is likely to spur a true revolution in mankind’s technological capabilities. This has led to the rise of quantum investment opportunities.
Quantum computers will be able to solve complex problems that normally slow down classical computers, such as optimization, cryptography, machine learning, and simulation. Public equities investors need to take notice of this new sector while also exercising patience.
Below is a list of promising quantum computing companies that investors should buy to turn their small investments into millions of dollars.
FormFactor (FORM)
In the world of quantum computing, FormFactor (NASDAQ:FORM) happens to be one of the leading suppliers of cryogenic probes that enable the testing of quantum devices at extremely low temperatures.
Unfortunately, FormFactor has struggled with financial results over the past year as a slowing global economy had initially dampened demand for its products in countries such as Taiwan and China. In fiscal year 2022, both countries contributed to more than 40% of revenues, and growth in geographies stagnated tremendously. According to recent earnings releases, demand remains sluggish, which is in line with what a number of semiconductor companies are feeling right now in the midst of the current chip slump.
However, it is likely investors have overreacted to the short-term, macroeconomic setbacks FormFactor has had to deal with over the past twelve months. FormFactor continues to be well-positioned from a balance sheet perspective to whether the current storm will eventually capitalize on the growing demand for quantum computing and other emerging trends such as 5G, artificial intelligence, and autonomous vehicles. In other words, public equity investors ought to see these short-term headwinds as possible buying opportunities.
This makes it one of those quantum investment opportunities to buy.
Rigetti Computing (RGTI)
With Rigetti Computing (NASDAQ:RGTI) still being priced under $2 a share, the quantum computing stock will perhaps continue to make entries on my lists. Despite having faced a bout of macroeconomic volatility, shares are still up nearly 59% for the quarter and 155% year-to-date, leaving many other technology equities in the dust.
The stock, of course, has been aided by its exposure to the ever-burgeoning sector of quantum computing, a space that many public equities investors view as just as promising or more so than artificial intelligence. The vertically integrated pure-play quantum computing firm designs and manufactures its multi-chip quantum processors, primarily leveraging superconducting circuits as qubits fabricated on silicon chips and operating at near-zero temperatures. All in all, it’s one of those quantum investment opportunities you can’t ignore.
Rigetti has formed partnerships with several leading companies and institutions, such as NASA and the U.S. Department of Energy as well as a recent partnership with the ADIA Lab, an Abu-Dhabi-based research institute. Positive earnings reports and secular trends should get investors excited about Rigetti Computing’s future. Patient, long-term holders could see tremendous benefits as the company continues to scale and grow its product base.
Lockheed Martin (LMT)
Lockheed Martin (NYSE:LMT) is a global aerospace and defense company that provides products and services for various domains, such as air, land, sea, space, and cyber. Besides being a defense contract, Lockheed Martin is also a leader in quantum technology research and development. In particular, the company operates the USC-Lockheed Martin Quantum Computing Center (QCC), which is a joint scientific research effort with the University of Southern California (USC).
The QCC leverages a quantum annealing system, manufactured by D-Wave Systems (NASDAQ:QBTS), to conduct quantum research. In essence, quantum annealing is a branch of quantum computing that uses quantum fluctuations to find the optimal solution for combinatorial optimization problems. Lockheed Martin is also developing quantum algorithms for technologies, such as quantum communications and quantum remote sensing since it believes these will be useful in its “Space 2050” endeavor.
Lockheed Martin is a relatively stable and profitable company with a diversified portfolio of businesses, and for those desiring exposure to a novel space like quantum computing but who do not desire volatility, Lockheed Martin could make for a decent long-term investment.
On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
