The Rise of Quantum Computing: Transforming Industries and Stock Opportunities
Understanding Quantum Computing
Quantum computing represents a revolutionary leap in technology, utilizing quantum mechanics to perform complex calculations significantly faster than conventional computers.
Unlike traditional computers, which operate using bits (0s and 1s), quantum computers harness qubits. These qubits can exist in several states at once, a phenomenon known as “superposition.” This unique capability allows quantum computers to handle large volumes of data and tackle intricate problems that ordinary computers cannot solve.
Quantum Computing: A Future Game-Changer
Innovation drives the most notable stock movements in the market. Quantum computing, much like the calculator before it, is poised to upend various vital industries. Sectors such as artificial intelligence, drug development, and finance stand to benefit immensely from this technology.
Stocks to Keep an Eye On in Quantum Computing
The following three quantum computing stocks are worth monitoring:
1. IonQ (IONQ)
IONQ specializes in creating practical and scalable quantum computers applicable across numerous industries. For example, Oak Ridge Laboratory employs IONQ’s technology to enhance the U.S. power grid, while airplane manufacturer Airbus (EADSY) utilizes IONQ’s algorithms to optimize airplane loading processes.
IONQ’s Milestone Contract with the Air Force
In late September, IONQ shares surged 20% following the announcement of a ~$50 million contract with the U.S. Air Force. Although shares have spiked short-term, they’ve also broken the 200-day moving average, indicating potential long-term growth.
Image Source: Zacks Investment Research
IONQ continues expanding its presence in government and enterprise sectors, recently extending a contract with Amazon (AMZN) Web Services.
Image Source: Zacks Investment Research
2. Rigetti Computing (RGTI)
Rigetti also offers commercial quantum computers for various applications. While RGTI is currently viewed as a speculative penny stock, it has secured contracts with NASA and banking heavyweight HSBC (HSBC) to explore financial use cases.
3. D-Wave Quantum (QBTS)
D-Wave specializes in quantum software development. The company has partnerships with notable organizations such as Mastercard (MA) and Lockheed Martin (LMT).
Concerns Over Quantum Security from China
Recent reports claim that researchers in China have potentially compromised RSA encryption using D-Wave technology. If verified, this discovery could raise significant security issues for existing encryption methods, though the technology might be invaluable for government purposes.
Bottom Line
Quantum computing is an emerging technology capable of addressing complex problems. While still in its infancy, it holds promise for disrupting multiple industries in the future.
7 Best Stocks for the Next 30 Days
Just released: Experts have highlighted 7 elite stocks from a list of 220 Zacks Rank #1 Strong Buys, deemed “Most Likely for Early Price Pops.”
Since 1988, this list has consistently outperformed the market with an average annual gain of +23.7%. Ensure you pay attention to these handpicked stocks.
Want the latest recommendations from Zacks Investment Research? Download 5 Stocks Set to Double for free.
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Mastercard Incorporated (MA): Free Stock Analysis Report
Airbus Group (EADSY): Free Stock Analysis Report
HSBC Holdings plc (HSBC): Free Stock Analysis Report
IonQ, Inc. (IONQ): Free Stock Analysis Report
Rigetti Computing, Inc. (RGTI): Free Stock Analysis Report
D-Wave Quantum Inc. (QBTS): Free Stock Analysis Report
To read this article on Zacks.com, click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
