Quantum computing is an emerging and potentially revolutionary technology that could have a profound impact on various industries and fields. The market potential for quantum computing is immense. It is widely regarded as one of the most promising technological advancements of the 21st century.
The great thing about these companies is that many of them are speculative investments and therefore trade at attractive valuations. I think that these companies are primed for the next bull run. As the Nasdaq moves higher, so too will these options.
So, here are three quantum computing stocks for investors to consider for March this year.
Quantum Computing Stocks to Buy: IonQ (IONQ)
IonQ (NYSE:IONQ) distinguishes itself as a pure-play quantum computing company. They have a strong focus on developing trapped ion quantum computers.
For this year, it projects its revenue for the full year 2024 to range between $37 million and $41 million. Its bookings are expected to be between $70 million and $90 million. For the first quarter of 2024, revenue is forecasted to be between $6.5 million and $7.5 million. Despite these projections, IONQ anticipates an adjusted EBITDA loss of $110.5 million for 2024.
The company’s performance in 2023 set a strong foundation for these forecasts. They had significant achievements including hitting $65.1 million in bookings for the year, exceeding the upper end of its guidance. This represents a 166% growth compared to the previous year. The revenue for 2023 was reported at $22.042 million, a substantial increase from $11.131 million in 2022
I see the projected loss as potentially being a good thing for IONQ investors. This could keep its valuation down to acceptable levels. Due to its small market cap of 1.9 billion, it could rise significantly along with the broader market amid a bull run.
Rigetti Computing (RGTI)
Rigetti Computing (NASDAQ:RGTI) is known for developing quantum integrated circuits. They also offer a cloud platform that supports quantum algorithm development.
In my opinion, RGTI is one of the more underestimated companies in this list. This is because it has an angle of offering more of the “picks and shovels” to the quantum industry rather than being a pure-play option than IONQ. Investing in RGTI could then give one more indirect than direct exposure to the industry. This could be a strong diversifier.
In terms of outlook and developments, RGTI made significant progress in 2023, including the deployment of the 84-qubit Ankaa-2 quantum computer, which achieved a 98% median 2-qubit fidelity and a 2.5x improvement in error performance compared to its previous quantum processing units (QPUs).
Underscoring why I believe that it could be a strong contender, analysts have given RGTI a “Moderate Buy” rating, with a consensus price target of $2.75, indicating a potential upside of 71.34% to be reached within the next twelve months.
IBM (IBM)
IBM (NYSE:IBM) extends its influence in quantum computing beyond hardware.
I chose IBM for investors who want a well-diversified blue-chip investment rather than the more speculative companies on this list. Although its potential for capital growth may be lower, I feel that with its dividend yield of 3.52% at the time of writing, this makes it a solid and safer choice.
IBM is also expanding its global footprint in quantum computing with the establishment of its first European quantum data center in Germany, set to open in 2024. This facility will enable users in Europe to access IBM’s quantum computing systems and services.
Hardware-wise, IBM has introduced advanced processors like the 133-qubit “Heron” and the 433-qubit “Osprey”. Meanwhile, On the software front, IBM is evolving its Qiskit platform with updates that promise to increase the ease of quantum software programming.
IBM then has many forks in the fire to take advantage of the rise of quantum computing, which along with its stability and dividend yield, makes it one of those stocks that could rise in a bull run. If you are looking for quantum computing stocks to buy, you can’t go wrong with these.
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 started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.