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The Quantum Computing Revolution is Here: 3 Top Stocks to Watch

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What is Quantum Computing?

Quantum computing is a next-generation technology that exploits the principles of quantum mechanics to execute complex calculations exponentially faster than traditional computers.

Contrary to classic computing, which leverages bits (0s and 1s), quantum computers use qubits, which can exist in multiple states concurrently. This capability, referred to as “superposition”, allows quantum computers to process vast amounts of information and solve complex problems unachievable for normal computers.

Quantum Computing: The Next Big Trend

Innovation is at the heart of the market’s most prolific stock moves. Like the calculator before it, quantum computing will transform and revolutionize several essential industries. Artificial intelligence, drug discovery, and financial models are just a few fields that could be disrupted and upended.

Quantum Computing Stocks to Watch

Below are three up-and-coming quantum computing stocks to watch:

Quantum Computing Stock #1

IonQ ((IONQ - Free Report) )

IONQ builds practical and scalable quantum computers used in a variety of industries. For instance, Oak Ridge Laboratory uses IONQ’s technology to improve the U.S. power grid. Airplane manufacturer Airbus ((EADSY - Free Report) ) uses IONQ’s algos to improve airplane loading.

IONQ Air Force Contract is a Game Changer

IONQ shares exploded 20% in late September after the company announced a ~$50 million contract with the U.S. Air Force. Though shares are extended short-term, they recently cleared the 200-day moving average, signaling a long-term trend change.

Zacks Investment Research
Image Source: Zacks Investment Research

The company continues to gain momentum in government and enterprise sectors, recently extending a contract with Amazon ((AMZN - Free Report) ) web services.

Zacks Investment Research
Image Source: Zacks Investment Research

Quantum Computing Stock #2:

Rigetti Computing ((RGTI - Free Report) )

Like IONQ, Rigetti provides commercial quantum computers that are used in various applications. Though RGTI is a speculative penny stock currently, the company has inked a deal with NASA and banking giant HSBC ((HSBC - Free Report) ) (to develop financial use cases).

Quantum Computing Stock #3:

D-Wave Quantum ((QBTS - Free Report) )

The QBTS quantum platform specializes in software development. QBTS has deals with well-known companies like Mastercard ((MA - Free Report) ) and Lockheed Martin ((LMT - Free Report) ).

China Quantum News

Chinese researchers claim to have broken RSA (an encryption algo that uses a pair of keys to encrypt data using D-Wave’s technology. If true, the news raises massive security concerns for current encryption methods. Though the news is scary for the public, the technology will be extremely valuable for governments for offensive and defensive purposes.

Bottom Line

Quantum computing is a revolutionary, next-generation technology used to solve complex equations. Though it’s in the early stages, quantum computing is likely to disrupt several industries.

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