With 2024 on the horizon, keen-eyed investors are on the hunt for affordable quantum computing stocks set to make waves in the new year. A number of promising companies have arrived on the scene, each making calculated strides towards the commercialization of quantum computing. Quantum computing’s potential to revolutionize sectors from healthcare to economic research makes it a hotbed of interest for institutional investors.
Pioneering the quantum computing space is IonQ (NYSE:IONQ), a pure-play quantum computing company that is already providing systems across major cloud services. Despite remaining in a developmental phase with only modest revenues, IonQ’s public position and steady financial growth are evidence of its potential.
The company reported a commendable $7.58 million revenue for Q1, representing a notable 77% increase compared to the same time in 2023. However, it also experienced a net loss of $39.6 million, a 45% increase from the previous year. Despite this, IonQ projects a boosted bookings guidance of between $75 million and $95 million for 2024, suggesting optimism in their sales pipeline and expansion. At just $8.71 a share, IonQ presents a more affordable option in the face of big tech titans like Microsoft (NASDAQ:MSFT) or Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).
Also making waves in the quantum computing pool is Quantum Computing Inc. (NASDAQ:QUBT). Their focus on both quantum software and hardware has resulted in products like Qatalyst software and quantum processing units. With the acquisition of QPhoton to bolster their capabilities, QUBT aims to extend their reach across sectors like finance and healthcare.
The highlight of QUBT’s strategy is their dedication to creating accessible and energy efficient quantum solutions. The company is tackling affordability head-on, designing products that can operate at room temperature with low power consumption. Coupled with their end-of-year financial report detailing decreased liabilities, QUBT’s stock is one to watch.
Equally intriguing is the trajectory of Rigetti Computing (NASDAQ:RGTI), a company specializing in the development and production of quantum integrated circuits. Through strategic partnerships with bodies like NASA and the U.S Department of Energy, Rigetti is working to advance quantum computing.
Despite a challenging financial performance in 2024 with revenues of $3.05 million for Q1 and an EPS of -$0.14, key valuation ratios signal that Rigetti might be undervalued. With a Price/Sales (PS) ratio of 15.37 and a Price/Book (PB) ratio of 1.71, Rigetti offers an appealing stock option.
Nvidia (NASDAQ:NVDA), chiefly known for GPUs, is branching into quantum computing via their simulation platforms. The CUDA-Q platform, an open-source framework for quantum computing, integrates Quantum Computing Units (QPUs) with classical computing systems like GPUs. Despite high valuation ratios, Nvidia’s diversified growth areas – quantum, blockchain, semiconductors, and gaming – could hint at undervaluation.
IBM (NYSE:IBM) is a front-runner in quantum computing, offering advanced quantum hardware and software. Its Qiskit platform forms the core of their strategy, simplifying the programming of quantum circuits and harmonizing quantum computations with classical processes. IBM’s rich history and low-risk profile could make it a perfect fit for the cautious investor.
Microsoft’s quantum strategies span the development of topological qubits and quantum computing services through Azure Quantum. A breakthrough with Quantinuum has resulted in logical qubits with significantly lower error rates than physical qubits. Azure Quantum, Microsoft’s cloud-based quantum computing platform, and their development of the Q# toolkit, bolster their position further. Despite a high valuation on paper, Microsoft’s growth prospects may render it an undervalued stock.
Alphabet made significant strides in quantum computing in 2019, achieving quantum supremacy with its Sycamore computer. It continues to advance its efforts in quantum technology through Sandbox AQ. Despite high valuations, Alphabet’s EPS growth and strong platforms could result in significant returns.
As we approach 2024, these quantum computing stocks present tempting options for investors seeking affordable entries into this promising field.
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