AI stocks have overshadowed other emerging technologies, including quantum computing stocks. However, it is only a matter of time before quantum computing stocks blow up, with BCC Research, forecasting the market to grow at a CAGR of 48.1% from $713.4 million in 2022 to $6.5 billion by 2028.
Furthermore, quantum computing enables businesses to solve the most complex problems that can’t typically be handled by traditional computers. However, most of the pure plays in the sector are speculative and are still years away from turning a profit, but the potential for disruption remains massive. Moreover, the synergy between AI and quantum computing promises profound benefits, enhancing AI’s capabilities with unparalleled computational speed and efficiency.
With that said, here are three quantum computing stocks that offer excellent stability and upside potential.
International Business Machines (IBM)
International Business Machines (NYSE:IBM) is one of the pioneers in the quantum computing sphere, playing a key role in the commercialization of the technology. IBM’s goal is to effectively scale up quantum computing technology to solve complex problems, reduce error rates, and develop practical applications for industries. In doing so, the company has been developing sophisticated quantum computers that can operate in the most demanding conditions. Moreover, these are available in its cloud-based IBM Quantum Experience platform, which limits the need for physical hardware.
To further cement its role in the sector, IBM has developed the robust IBM Quantum System Two and the ‘IBM Quantum Heron’ processor, which is known for its effective outcomes and high performance. Moreover, its powerful IBM Quantum Network collaborates with over 250 businesses globally to foster quantum innovation. Hence, IBM stock remains a key stakeholder in the quantum computing realm, and its efforts are likely to pay many dividends down the road.
Honeywell (HON)
Honeywell (NASDAQ:HON) is one of the largest American multinational conglomerates, with its tentacles spread across multiple areas, including aerospace, building technologies, and performance materials.
It’s also actively investing in quantum computing, which could open up new and profitable business avenues in the not-so-distant future. Like IBM, Honeywell boasts a robust core business with diversified revenue sources that underscore the stability of its operations. On top of that, investing in HON stock comes with a solid dividend, which the company has been paying consistently over the past 21 years.
Therefore, it has the internal resources to continue funding its quantum computing ventures, such as Quantinuum, which recently achieved a whopping $5 billion valuation . Moreover, one of my fellow InvestorPlace colleagues, Michael Que, discussed Honeywell’s acquisition of Civitanavi Systems in a recent article. The Italian aerospace firm’s acquisition enhances Honeywell’s aerospace operations and presents opportunities to integrate these with its quantum computing capabilities.
IonQ (IONQ)
IonQ Inc. (NASDAQ:IONQ) is one of the few pure-plays in the quantum computing space, that claims to have developed the world’s most powerful quantum computer, with a quantum capacity of 32 qubits.
As we advance, the goal is to develop modular quantum computers that are scalable and customizable to meet diverse needs. This approach allows for greater flexibility and potentially more powerful quantum computing solutions, streamlining the process of upgrades and expansion.
Furthermore, the company has been growing at a rapid pace of late, with year-over-year (YOY) revenue growth at an impressive 98%. Additionally, it recently set its sales expectations between $37 million and $41 million for the current year, slightly behind analyst expectations. Encouragingly, analysts expect the company to generate sales upwards of $82.4 million for fiscal 2025, a considerable jump from this year. Also, Tiprank’s analysts expect almost a 99% upside from current price levels in IONQ, making it an excellent stock to pick at this time.
On the date of publication, Muslim Farooque 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.