Quantum computing is an emerging technology that has great potential to revolutionize businesses in various industries. These advanced machines can solve complex problems faster than traditional computers, making them well-suited for weather forecasting, financial modeling, and material science research tasks. Therefore, undervalued quantum computing stocks are great for investors who want to stay ahead of the curve.

There are many different quantum computing stocks to choose from, so it’s important to do your research before making a purchase. When investing in quantum computing stocks, you should consider the company’s financial stability, plans, and competitive landscape.

In selecting undervalued quantum computing stocks for this list, the focus is on companies with diversified business streams but have not been doing too well this year because of the bearishness of the markets. All three stocks are down more than 30% this year, making them attractively valued for the aggressive investor.

Without waiting any longer, here are three undervalued quantum computing stocks that you should consider investing in:

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) is best known for its range of graphics cards, which are used in everything from gaming computers to cryptocurrency mining rigs. However, the company is also working in the quantum computing space.

Nvidia offers software tools to make it easier for developers to create applications that run on quantum computers. Nvidia’s cuQuantum SDK provides a collection of libraries, tools, and programming challenges that enable users to develop quantum algorithms and applications on Nvidia GPUs. The company’s experience in hardware and software makes it well-positioned to become a major player in the quantum computing space.

To pursue its quantum computing ambitions, Nvidia has joined hands with International Business Machines (NYSE:IBM), Google AI, and others on this project who share these ambitions for quantum computing advancements. The partnerships underscore the company’s commitment to delivering powerful quantum computing solutions to help researchers solve some of the world’s most challenging problems.

Nvidia stock was a hot topic during the pandemic. Sales rose rapidly due to people buying computer parts to work from home. This helped contribute to Nvidia’s 61% jump in revenue in its latest fiscal year. However, this year is different. Nvidia has been suffering recently as sales for graphic cards declined due to tough economic times.

The stock has dropped more than 50% this year so far. But as a value investor, Nvidia is one of the best undervalued quantum computing stocks. It has a wide moat and strong prospects, meaning investors need not worry if it pours capital extensively into quantum computing.

Taiwan Semiconductor (TSM)

Taiwan Semiconductor (NYSE:TSM) is the world’s biggest contract chipmaker and one of Taiwan’s most important companies. It is also a few firms that manufacture chips using the most advanced process technologies.

The company is now the largest foundry in the world, with a market share of over 53%. It manufactures chips for some of the biggest names in the industry, including Apple (NASDAQ:AAPL), Qualcomm (NASDAQ:QCOM), and Nvidia. TSMC has been instrumental in Taiwan’s transformation from a poor agricultural country to a major high-tech powerhouse. The company is a symbol of Taiwan’s economic success and global competitiveness.

To help Taiwan remain competitive in the emerging quantum computing market, TSMC has partnered with Taiwan’s science ministry. Together, they hope to create a quantum cloud computing platform that will open to businesses and researchers worldwide. The platform will use TSMC’s advanced chip-making technology and the science ministry’s expertise in quantum information processing.

Taiwan Semiconductor Manufacturing Co. is doing well financially, with everything going according to plan. In the second quarter of the year, the world’s biggest chipmaker posted a record net profit and a rise of 43.5% year on year. Both figures handily surpassed analyst estimates. TSMC’s third quarter revenue is projected to be between $19.8 billion and $20.6 billion, up from last year’s figure of $14.8 billion.

Such a solid financial platform means the company can pursue its quantum computing issues without upsetting the boat. Shares are down over 40% this year.

Alibaba (BABA)

Alibaba (NYSE:BABA), the Chinese e-commerce giant, has come under pressure in recent months due to increased regulatory activity. Last year, the company was fined a record $2.8 billion by Chinese regulators for violations of anti-monopoly laws. Alibaba is also being examined by the Securities and Exchange Commission (SEC) for its accounting practices.

Under usual circumstances, investing in BABA shares is an easy decision. However, the e-commerce giant is in trouble because of the regulatory activity in both the U.S. and China, a slowdown in the economy, and Covid lockdowns. This led to a perfect storm, which resulted in Alibaba’s first quarterly revenue drop since 2014.

However, China’s e-commerce behemoth is looking to shake things up by investing in several innovative new business areas. These include quantum computing, artificial intelligence, autonomous vehicles, and virtual reality. Quantum computing, in particular, is not a new area of investment for Alibaba.

Back in 2018, Alibaba’s cloud computing segment launched a superconducting quantum computing service in partnership with the Chinese Academy of Sciences. The quantum computer offers 11 quantum bits of speed. It can support various use cases and is available to all Alibaba Cloud users.

As quantum computing technology becomes more advanced, it will have a greater impact in the future. Alibaba will use this technology to build its future and drive profitability moving forward.

On the publication date, Faizan 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.