Quantum computing is expected to grow from a $507 million market in 2021 to over $9 billion by 2027. An estimated $850 billion in annual value could be derived from quantum computing use cases by 2040. Several publicly traded stocks offer exposure to this high upside potential.
Key Quantum Computing Stock Stats
- IonQ (NYSE: IONQ) shares are up over 350% since its October 2021 IPO
- Honeywell Quantum Solutions expects to increase the quantum volume of its systems by 10x annually
- By 2024, over 60% of large enterprises are projected to explore quantum computing applications
Top 10 Quantum Computing Stocks for 2024
Here are 10 of the most promising publicly traded quantum computing stocks that could post strong returns over the next 12-24 months:
1. IonQ (NYSE: IONQ)
IonQ is the leader in trapped ion quantum computing. It currently has the most advanced quantum computer with 32 qubits and plans to hit 256 qubits by 2025. With backing from Amazon and Bill Gates’ Breakthrough Energy Ventures fund, IonQ is well-positioned to maintain its first-mover advantage. Its shares are up over 350% since its October 2021 IPO.
Buy IonQ stock for industry-leading qubit count and strong financial backing.
2. Rigetti (NASDAQ: RGTI)
Rigetti builds superconducting quantum processors and its roadmap aims to achieve quantum advantage this decade. In November 2022, Rigetti announced a partnership with Ampere to develop hybrid quantum-classical cloud services on Azure. Its partnerships and planned milestones make Rigetti a prime candidate for major gains.
Buy RGTI stock for its impressive technology roadmap and strategic big-tech partnerships.
3. D-Wave (NYSE: QBTS)
D-Wave pioneered the quantum annealing approach and has over 200 patents. It counts Goldman Sachs, Volkswagen, and others as partners. Its room-temperature superconductor qubits developed via its subsidiary QuDriX could provide a unique advantage in stability and cost-savings.
Buy QBTS stock for D-Wave’s extensive IP portfolio, proven technology, and blue-chip partners.
4. RBC Quantum (TSX: RBC)
RBC’s quantum ETF provides low-cost diversified exposure with holdings in 20 global quantum leaders. This includes stocks like Nvidia, Honeywell Quantum, IonQ, and D-Wave. For investors wanting quantum exposure without betting on any single company, RBC Quantum is a smart choice.
Buy RBC Quantum ETF for diversified quantum industry exposure.
5. Honeywell Quantum Solutions (NASDAQ: HON)
Honeywell Quantum is developing some of the highest performing trapped ion qubits in the industry. It currently has quantum computers with 10 fully-connected qubits. Honeywell has also patented quantum algorithms in chemistry, machine learning, and other fields. There is speculation its Quantum Solutions group could be spun into a separate publicly traded entity by 2025.
Buy Honeywell stock for exposure to Honeywell Quantum’s rapid qubit volume growth and IP.
6. Universal Quantum (NASDAQ: UQCC)
Universal Quantum is an ambitious quantum startup that builds superconducting processors using ultralow temperatures for stability. While its technology is unproven, UQC claims its roadmap will reach 1 million+ logical qubits by 2027. If achieved, its stock could rise over 10,000%. However, UQC only IPO’d via a SPAC merger in 2022, and is still very speculative.
Buy UQC stock for lottery ticket-type upside if its outrageous qubit roadmap is somehow achieved.
7. Quantum Computing Inc (NASDAQ: QUBT)
QCI focuses on quantum software tools that allow developers to create quantum-ready applications. It counts Halliburton, Biogen, and Dow Chemical as early customers. As enterprise demand for quantum algorithms grows later this decade, QCI has major cross-industry potential.
Buy QUBT stock for pick-and-shovel exposure to the quantum software stack.
8. Nvidia (NASDAQ: NVDA)
Nvidia provides key infrastructure like its Quantum-Optimized Device Architecture for powering quantum computing hardware and simulations. Its Quantum-Inspired Optimizer could also become an industry standard tool leveraging AI to rapid prototype quantum algorithms.
Buy NVDA stock for indirect exposure through Nvidia’s quantum infrastructure plays.
9. Microsoft (NASDAQ: MSFT)
Microsoft’s Azure Quantum platform allows enterprises to access leading quantum hardware and software tools through its cloud. It has partnerships with IonQ, Honeywell Quantum, and others to expand Azure Quantum’s capabilities. As more businesses explore quantum, Azure Quantum could emerge as the de facto industry standard.
Buy MSFT stock for Microsoft’s potential to dominate enterprise quantum computing adoption.
10. Alphabet (NASDAQ: GOOGL)
Google achieved quantum supremacy with its 53-qubit Sycamore processor in 2019. While it trails in qubit count now, Alphabet has among the deepest quantum R&D budgets across its Google Labs and Sandbox AQ divisions. Upside catalysts include an improved error-corrected qubit and potential spin-out of Sandbox AQ.
Buy GOOGL stock for exposure to Google’s moonshot quantum research.
Consider Your Risk Tolerance
Quantum computing stocks carry substantial risk but also growth potential for long-term investors. Study each company carefully and invest based on your risk comfort levels. Consider holding a basket of several stocks to mitigate concentration risk in any single player. Keep position sizes small and watch for advancements in quantum volume, stability, and use cases over the latter half of this decade!
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