In recent decades, researchers have plunged into the deepest depths of the sea and discovered the potential in chemical compounds that were previously considered unpromising in terms of practical applications. It may seem like there are no more areas in which a breakthrough can occur to stimulate economic development. However, investors with quantum sensing stocks in their portfolios know that this road leads to a bottomless bag of gold. The quantum sensors market grew to $149.03 million last year and is expected to reach $1.17 billion by 2033. Such ambitious forecasts are based on the variety of areas where the new technology can improve processes and bring enormous profit growth, from medicine and defense to construction and mining.
Advanced quantum sensors offer a significant advantage, especially when it comes to the international level. Countries that are ready to compete in the tech race have already entered the field, as evidenced by the high investment involvement of North America, Europe, and the Asia-Pacific region. Investors will not miss the opportunity to reap all the benefits of participating in the development of projects that will be in demand in this century.
IonQ (IONQ)
Quantum computing would not be possible without hardware providers, which is exactly what IonQ (NYSE:IONQ) is. The merger with dMY Technology Group III 3 years ago allowed the company to go public. In less than two months, the stock rose from below $10 to $31, but the market was not ready for advanced solutions. Quantum sensing stocks are 100 steps ahead of mainstream 2024 technologies, so users and applications need time to adopt the idea. To speed up the process, IonQ is partnering with cloud giants. AWS and Google Cloud are bringing quantum computers closer, and IonQ’s early recognition is more likely.
Q1 of 2024 showed how dynamically the high-tech company can develop, as its revenue for Q1 increased to $7.6 millioncompared to $4.3 million in Q1 of 2023. A 77% year-over-year improvement may indicate not only a rise in demand but also IonQ’s ability to scale. This progress requires significant capital injections into research, which resulted in operating expenses of $60.5 million in the first three months of the year. The company’s cash reserves ($375 million as of March 2024) cover such needs and provide room for development.
International Business Machines (IBM)
International Business Machines (NYSE:IBM) has been on the list of technology sector leaders for years. The constant search for promising niches has prolonged the company’s youth and allowed it to switch in time to those areas that will become key to meeting the needs of users around the world in a few years. Solutions in the areas of cloud computing, artificial intelligence (AI), and data analysis have built IBM’s reputation, and now it’s time for quantum computing.
The representative of quantum sensing stocks is leading the way in terms of return on equity (ROE), holding the bar at 35%, which is 21% above the industry average. The tech giant continues to grow through acquisitions of other companies such as StreamSets and webMethods. Such acquisitions allow the company to stay ahead of the competition in terms of data automation and integration, as well as to improve the growth space for quantum computing. Despite the costly nature of this development vector, the company compensates for research investments through diversified revenue streams. As a result, over the past year, IBM has delivered a 16% year-to-date gain for investors.
Honeywell International (HON)
Industrial and consumer markets are excited about Honeywell International’s (NASDAQ:HON) range of products and services, as this technology titan meets the needs of defense, aerospace, energy, and other industries. The company is on a mission to take the efficiency of the technologies around us to the next level, as evidenced by its achievements in warehouse robotics, motors, avionics, and smart buildings. The creation of new standards for quantum volume has brought the company to the brink of creating extremely complex quantum states with unprecedented accuracy.
Honeywell’s developments can be applied to cybersecurity and machine learning. Strengthening the capacities of the latter area may mean a new round of AI development, and the synergy of solutions can take even the current leaders out of the competitive game. The company’s high operating efficiency pleasantly surprises analysts who did not expect earnings per share of $2.25 for Q1 2024.
This quarter, revenue crossed the $9.11 billion mark, which led to improved sentiment towards quantum sensing stocks. Shares are up by 5% year-to-date.
On the date of publication, Julia Magas did not hold (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.