Quantum computing stocks are gaining traction among investors. This trend has sparked a surge in quantum computing stocks to buy.
The shift from traditional to quantum computing is not just imminent, it’s already underway. This article aims to highlight the growth potential of quantum-based stocks. We’ll dissect market trends and key drivers that make these stocks a promising investment.
To uncover these opportunities, I used various methods. I asked ChatGPT to narrow down the list, and then used a machine learning Google Sheets extension to extrapolate the predictions.
So, are you ready to profit from quantum innovation? Join us on this journey into the quantum realm. We’ll guide you on how to maximize returns and minimize risks. Let’s dive in.
IBM (IBM)
IBM (NYSE:IBM) has made notable progress in quantum computing and their advancements include accessibility through the cloud. They are continually striving to enhance this technology. It’s part of a larger cloud and cognitive software division that has been instrumental to the company’s growth.
IBM scientists claim a major leap in quantum computing. They’ve developed a strategy to handle quantum noise, a major hurdle in the field. This approach introduces more noise and tracks its effects, potentially making quantum computers as usable as their traditional counterparts.
There’s more to love with IBM. For instance, the company’s dividend yield stands at an impressive 5.06%. The dividend is safe. IBM stock’s cash flow supports it well. Analysts also predict that IBM’s share will rise to $140.70 in the next year. These factors mean it could be undervalued.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) is another one of those quantum computing stocks to buy. The AI recommended the company due its development of topological qubits (the basic unit of quantum information). To simplify matters greatly, MSFT stock could be building a superior quantum system if it can handle these qubits. Work is still in research and development, but there have been some promising developments.
Microsoft Quantum researchers have reportedly reached a key milestone in developing a practical quantum computer. They’ve created a new way to represent a logical qubit that is stable and scalable, which is crucial for building a large-scale quantum computer. They’ve achieved this by inducing a phase of matter characterized by Majorana zero modes, a type of particle. This technology has passed important tests, showing it as a viable approach.
Now might be a good time to hop on board MSFT stock for other reasons too. Its share has rallied since the start of the year, growing 38.22% year to date. Furthermore, analysts rate the stock as a buy, and it has a $343.51 price target.
Alphabet (GOOGL)
Alphabet (NASDAQ:GOOGL) was the AI’s final recommendation. Google’s quantum computer accomplished “quantum supremacy” in 2019 through the execution of a task that a classical computer would find extremely difficult to complete. This achievement marks an important milestone in the progress of quantum computing.
Google’s Quantum AI team has made a significant breakthrough in quantum computing by reducing errors and increasing the number of physical quantum bits (qubits) in a ‘logical qubit,’ which is crucial for building large-scale quantum computers. They achieved this by using a specific error-correcting code called a surface code. This progress is a key step in Google’s plan to build an error-corrected quantum computer.
The GOOGL share was sold off earlier this year amid the rise of ChatGPT. In my view, this represents a buying opportunity for eager investors. Analyst rate it a buy, and it currently has a price target of $132.03.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.