Quantum computing holds massive potential, creating substantial opportunities for quantum computing stocks.
For example, a recent McKinsey report states that quantum computing could help generate nearly $2 trillion in value for chemicals, life sciences, finance, and mobility by 2035.
Look at the chemicals industry, for example.
With chemicals, quantum computing could “open up the possibility of modeling quantum-mechanical systems, such as molecules, polymers, and solids, at a totally different level of precision,” says McKinsey.com.
With life sciences, quantum computing could help create newer drugs quicker to treat diseases we never thought could be treated. “QC is expected to be able to predict and simulate the structure, properties, and behavior (or reactivity) of these molecules more effectively than conventional computing can,” added McKinsey.
It may even help make artificial intelligence far more efficient, especially as data storage and cloud computing needs grow dramatically.
That’s just a fraction of what it can help with.
In short, we’re looking at what may be a massive game-changer. The only issue here is that, much like any industry still in its infancy, we have to be patient with stocks such as:
IonQ (IONQ)
The last time I mentioned IonQ (NYSE:IONQ), I said it was a buy on weakness.
“After slipping from about $22 to a recent low of about $7.30, IONQ caught strong support and is just starting to pivot from over-extensions on RSI, MACD and Williams’ %R,” I added.
That was on July 5. Today, after testing a high of $9, IONQ is back to $7.62 and is still a strong buy, thanks to several key catalysts.
Helping, public and private institutions, including Airbus (OTCMKTS:EADSY), Hyundai Motors (OTCMKTS:HYMTF), and the United States Air Force Research Laboratory have been using its quantum computers to explore newer projects. Even Oak Ridge National Labs began researching energy schedule optimization for the U.S. national power grid. And it’s even working with the U.S. Navy to solve corrosion issues.
Also, according to Chief Executive Officer Peter Chapman, “One of the new things that we’re doing this year is applying quantum to large language models. We’re just at the beginning of that journey, but I hope to have results within a year or so.”
D-Wave Quantum (QBTS)
Another one of the top quantum computing stocks to buy is D-Wave Quantum (NYSE:QBTS).
While its chart is nothing to write home about either, give it time with the technology still in its infancy. And while earnings weren’t so hot, it is seeing solid booking growth. In its first quarter, for example, bookings of $4.5 million showed a 54% year-over-year improvement.
With earnings, its earnings per share loss of 11 cents was in line. However, revenue of $2.47 million, while up 56.3% year over year, did miss by just over half a million. In addition, B. Riley analysts just initiated a buy rating on the stock.
Also, as I noted earlier this year, “It inked a deal with Deloitte to speed up quantum computing adoption for governments and companies all over Canada. It’s even been working with Deloitte on transportation and national security issues in the U.S., too.”
Defiance Quantum ETF (QTUM)
Or, if you’d rather diversify with top quantum computing stocks at a lower cost, there’s the Defiance Quantum ETF (NYSEARCA:QTUM).
With an expense ratio of 0.40%, the ETF is exposed to companies at “the forefront of machine learning, quantum computing, cloud computing, and other transformative computing technologies,” as noted by DefianceETFs.com.
Some of its top holdings include Nvidia(NASDAQ:NVDA), Marvell Technology (NASDAQ:MRVL), and Advanced Micro Devices (NASDAQ:AMD).
After rallying from about $55 to nearly $67, the ETF just pulled back to about $61.50 thanks to the recent pullback in the markets. However, with patience, I’d like to see it initially rally back to its prior high. Longer term, I’d like to see it closer to $75.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. 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.