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The realm of quantum computing remains in an embryonic state, offering a tantalizing array of companies ripe for savvy investment due to their underappreciated growth trajectories. The volatility in this nascent industry creates the fertile ground necessary for the emergence of hidden gems – quantum computing stocks that could be poised for an exponential surge in the near future. In this landscape, discerning investors can uncover valuable opportunities that may yield substantial returns, as we delve into the three most undervalued quantum computing stocks to acquire in the promising month of April.
IonQ (IONQ) – The Quantum Crusader
Enter IonQ (NYSE:IONQ), a beacon in the quantum computing sector, offering cutting-edge quantum computing systems accessible via major public cloud services. With its modest market cap hovering around 1.9 billion, IonQ stands resilient in the face of market tumult, simultaneously offering promising growth potential for discerning investors. This underappreciated gem is backed by revenue projections for 2024, showcasing estimations between $37 million and $41 million, though forecasted EBITDA losses do provide an intriguing element of undervaluation. The company trades at a forward price-to-sales multiple of 47 times sales, a number overshadowed by the long-term revenue growth rate, hinting at a hidden value waiting to be unlocked.
Rigetti Computing (RGTI) – The Diamond in the Rough
Another entrant into the quantum computing landscape is Rigetti Computing (NASDAQ:RGTI), carving its niche in quantum integrated circuits and a sophisticated cloud platform for quantum algorithms. Sporting a market cap of a modest 219 million, this company emanates enormous growth potential, reflected by its low forward P/E ratio of 13 times sales, further affirming its status as an undervalued contender. Despite a revenue dip in the fourth quarter of 2023, Rigetti Computing shines with a robust 75% gross margin, signaling future promise and enhancing its allure among forward-thinking investors.
Amazon (AMZN) – Quantum Leap in the Making
Among the illustrious FAANG cohort, Amazon (NASDAQ:AMZN) stands out with its AWS Braket service, elevating the e-commerce giant to a formidable player in quantum computing. Bolstered by the launch of IonQ Aria, a groundbreaking Quantum Processing Unit (QPU), Amazon’s quantum endeavors beckon as an underappreciated facet of its unmatched suite of services. Driven by record-breaking figures in the fourth quarter of 2023, with soaring operating profits and revenue figures, Amazon emerges as a potential frontrunner in the quantum computing sphere, leveraging its existing developer community and certifications as a stepping stone to ascend in this dynamic arena.
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.
Matthew’s journey began amidst the whirlwind of the crypto boom in 2017, transitioning into the fintech sector and later navigating the realm of Australian and U.S. equities. His insights have graced prominent platforms such as MarketBeat, FXStreet, and the New Scientist magazine.
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