The shares of top quantum computing companies won’t stay cheap for long. Quantum computing is set to revolutionize our civilization and intersect the existing super-cycles of AI, nuclear fusion research, climate change, and shifts in sociology.
Top quantum computing companies are presently in the speculative and early stages of developing their systems, but some have emerged as clear leaders. These brands have significant growth potential, as quantum is a decade or longer away from reaching the beginning stages of commercialization.
If you are looking to buy high-risk, high-reward shares of companies, here are the three top quantum computing companies to buy.
IonQ (NYSE:IONQ) is a pure-play quantum computing company that went public via a SPAC merger. It’s the only quantum hardware currently available on all leading cloud platforms, including AWS and Azure. The company’s orientation toward cloud computing and partnerships with major tech companies like Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) suggests a strong competitive positioning.
There could also be a buying opportunity to scoop up IONQ’s undervalued shares. The company’s Q2 2023 earnings show a significant increase in sales to $5.52 million from $2.61 million a year ago, but also a steep rise in net loss to $43.72 million from $1.65 million. The six-month figures follow a similar trend, indicating growth in revenue but escalating losses.
IONQ is up 188.22% over the past year, riding high on the tailwinds of investors’ risk appetites moving back toward speculative tech investments. Its short-term underperforming may be less relevant for those looking to hold it for a decade or even longer, thus making it one of those top quantum computing companies to buy.
Known for its powerful GPUs, Nvidia (NASDAQ:NVDA) is also venturing into quantum computing. It has released cuQuantum, a software development kit for quantum computing workflows. Nvidia’s existing leadership in AI and machine learning could give it a unique edge in integrating quantum computing into existing tech stacks and branches of customers.
NVDA reported Q2 2023 revenue of $13.51 billion, a 101% YoY increase, with GAAP earnings per share at $2.48, up 854% YoY. The company returned $3.38 billion to shareholders through share repurchases and dividends and plans to continue share buybacks.
Although some analysts believe all of NVDA’s gains have been used up for this year, the case is not cut and dry. In August alone, the stock rose over five percent, despite reaching a trillion-dollar market cap earlier in the year. Calling a stock’s ultimate top or bottom is difficult to do in practice and impossible to do perfectly. I read about some people completely selling their position in NVDA based on their subjective notion it was “overvalued” in May, only to later see it rally a further 100 percent.
Whether NVDA falls or rises in the coming months may not matter much if we look back ten years from now, and its prospects look attractive.
FormFactor (NASDAQ:FORM) is a semiconductor company that provides testing and measurement solutions, including for quantum computing. FORM’s additional role as a supplier to Intel (NASDAQ:INTC), which recently released a quantum computing chip, means it has a stable footing as a relatively new entrant to the quantum world.
While most of its revenue comes from probe cards used in chip testing, a growing, high-margin segment is focused on systems for quantum computing. This offers investors a less risky way to gain exposure to the emerging quantum field.
FormFactor reported Q2 2023 earnings of $0.14 per share, beating estimates and marking a 16.67% earnings surprise. However, its $155.92 million revenue missed estimates by 3.79%. It has a consensus analyst rating of Hold.
FORM could be a buy due to being a relatively less-talked-about stock than the likes of NVDA or IONQ. These disruptive startups often have the most undervalued potential as the market focuses on the marquee names.
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.