Quantum computing is an early stage, high-growth industry that is garnering a lot of attention. Growth forecast suggests that annual annual growth could continue above 35% past the year 2030. Therefore, early-stage quantum computing stocks have incredible potential.
Yet, many of those companies are also fundamentally unsound. Some of the names known today will undoubtedly fall by the wayside and dissolve. That’s why investors should direct their capital toward the most fundamentally sound quantum computing stocks: Such investments better protect investor capital while also exposing investors to continued future growth.
Fortunately, there are currently pure-play stocks within quantum computing that are fundamentally sound. Outside of them, investors will have to look to larger, diversified companies in order to chase quantum computing gains.
FormFactor (FORM)
FormFactor (NASDAQ:FORM) is one of the superior quantum computing stocks for investor consideration. It is also the closest thing to a pure-play quantum computing investment that is also fundamentally on strong footing.
FormFactor is first and foremost a semiconductor firm. The company also has a strong connection to the quantum computing industry. FormFactor sells cryogenic systems that are integral to the manufacture of quantum computers. The more the quantum computing industry develops the more in demand those cryogenic systems will be which should obviously propel shares higher.
The industry connection is paramount, but so too is the fact that the company is fundamentally sound. While revenues are currently relatively flat they, along with margins, were above the midpoint of the guidance range. That suggests fundamental soundness as does the fact that the company continues to produce net income overall. That is exceedingly rare across the quantum computing sector at this time.
The combination of those factors continues to make FormFactor among the most fundamentally sound quantum computing stocks available currently.
IBM (IBM)
IBM (NYSE:IBM) continues to do a lot in relation to quantum computing. The stock is already quite strong and has re-emerged as a force in the tech space.
Users who would like to access IBM’s quantum computing facilities currently have to do so through its New York data center. However, IBM is scheduled to complete its EU data center located in Ehningen, Germany this year. It’s completion will grant cloud access to quantum computing users across Europe. IBM is opening another quantum computing data center which is a strong indication of its belief and investment into the technology.
IBM currently has more than 10 utility scale Quantum systems dotted across the globe currently. The more it connects, the more power.
Greater power is the ultimate goal here. The current world demands access to greater volumes of data at higher speeds. Quantum computing promises to deliver on that goal. Thus, quantum computing connected with other technological advancements like AI should lead to improved analytics and big data which in turn leads to greater insights and better business decisions. IBM is a big part of that.
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is generally going to be considered a strong stock investment throughout the remainder of 2024. The company’s recent AI slip up doesn’t seem to be affecting share prices too much as they have started to rebound. Beyond that, the forecast remains bright.
That’s a general reason to consider investing in Google but we are discussing quantum computing. Google has made significant strides. The company opened a quantum computing campus back in 2021. The goal is to build an error corrected quantum computer at some point.
Google’s goal is to build a computer boasting 1 million physical qubits. IBM released the first quantum computing system capable of 1,000 physical qubits and a 1,000 qubit chip at the end of 2023. Thus, if Google is to reach its goal it will have to do 1,000 times better than IBM has.
Google is a fundamentally sound firm with a serious investment in quantum computing technology. It represents a fine investment for those who seek to take advantage of future growth therein.
On the date of publication, Alex Sirois 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.
