Quantum computing happens to be one of the most promising technologies of the 21st century. The rise of generative AI and the subsequent surge in AI stocks has also had investors searching for the best quantum computing stocks. The novel technology has the potential to solve complex problems that normally slow down classical computers, such as optimization, cryptography, machine learning, and simulation. This has led to the rise of the best quantum computing stocks to buy.
However, still, in its infancy, quantum computing faces a number of challenges, such as scalability, error correction, and cost. Additionally, only a few companies have managed to successfully build and operate quantum computers, and even fewer have made them available commercially. In this article, we will investigate three quantum computing businesses with a lot of potential growth.
IonQ (IONQ)
IonQ (NYSE:IONQ), a pure-play quantum computing business, makes another appearance on one of my lists. Sure, IonQ claims to have built the world’s , but what makes IonQ’s business interesting is the accessibility of its quantum computers. The company realized early on that creating physical quantum computers and selling them is much less feasible than providing that computing power through a cloud network. Thus, IonQ has made its quantum computing capabilities accessible through cloud services, including (AWS), , and . Additionally, IonQ is developing its own “” network so users will be able to access its quantum computers directly through its network. This make it one of those best quantum computing stocks to buy.
In terms of recent expansions, the company has signed a with QuantumBasel to develop a European quantum data center. This effort will ultimately enhance quantum research in Europe while simultaneously democratizing quantum computing in the region.
In IonQ’s most recent earnings call, management due to quicker-than-expected implementations of “quantum-as-a-service” projects. IonQ’s financials show strong growth potential, as the company to generate between $38 and $42 million in revenue in 2023, up significantly from 2022’s $11 million top-line figure. Shares have 351% year-to-date, and investors should stay tuned in to see how IonQ will do in its next earnings report due on August 10th. Volatility around earnings may present opportune points of entry for investors desiring to get on the quantum computing craze.
Rigetti Computing (RGTI)
Rigetti Computing
(NASDAQ:RGTI) is another pure-play quantum computing business that through a SPAC deal. The quantum computing firm is , which means the company is involved in both designing and manufacturing its multi-chip quantum processors. Rigetti uses superconducting circuits as qubits, which are fabricated on silicon chips and operate at near-zero temperatures. Similar to IonQ, Rigetti Computing offers its quantum computing capabilities through cloud services, while also providing quantum software development tools as well as quantum hardware design and manufacturing.
Rigetti Computing’s competitive advantage not only stems from its full-stack approach and vertical integration of its quantum computing platform but also from the it has cultivated over time. Rigetti Computing has partnered with several leading companies and institutions, such as Ampere Computing, Deloitte, NASA, and the U.S. Department of Energy. Rigetti Computing also earlier this year a collaboration with Amazon Bracket, a fully managed quantum computing service from AWS, to add support for Rigetti’s new 80-qubit processor. All in all, it’s one of those best quantum computing stocks to buy.
Rigetti Computing’s financials show robust growth potential, as the company in revenue in 2022, up 46% year-over-year. The quantum computing firm as its quantum projects continue to scale. RGTI’s shares have year-to-date. However, similar to IonQ, shares have become volatile as the company’s Q2 earnings nears; investors betting on quantum computing should be paying close attention.
Honeywell International (HON)
Honeywell International (NYSE:HON) is a fairly diversified industrial conglomerate with heavy exposure to both aerospace and defense end markets. However, Honeywell has invested heavily in the quantum computing space. The company uses trapped-ion technology for its quantum computers, similar to IonQ, and has claimed to have the quantum computer for commercial use, based on quantum volume. The industrial giant’s with quantum computing software firm Cambridge Quantum will enable Honeywell to develop a full-stacked quantum business.
Honeywell International’s financials show solid growth potential, as the company $35.4 billion in revenue in 2022, up slightly more than 3% YoY. Still, the industrial firm could serve as a good bet for investors wary of betting money on pure-play businesses that still have yet to prove a commercial success. Quantum computing innovations and investments in the technology’s commercial viability through partnerships could pay off for Honeywell in the future, potentially breathing life back into its top-line metrics in the long run.
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.
