Despite the immense potential of quantum computing, the market value of most quantum computing stocks remains relatively low. This presents a unique opportunity to capitalize on the technology’s growth and reap substantial profits from quantum computing stocks you buy on the dip.
We’ve also seen a slight dip in the Nasdaq over the past month, with the index falling 4.10%. This then could further the bull case even more.
Here are three quantum computing stocks to buy on the dip for April this year. These companies are in the prime position to purchase and hold investments for patient investors.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) is developing a comprehensive quantum computing ecosystem with its Q# framework. The company aims to make quantum computing accessible to developers through its platforms and tools.
The company has partnered with Quantinuum to enhance the reliability of its quantum systems. They have demonstrated a significant achievement by showcasing an 800x improvement in the logical error rate compared to the physical error rate.
Moreover, Microsoft’s Azure Quantum platform is central to its strategy, providing tools and resources that make quantum computing accessible to developers and researchers. This includes the Q# programming language and the Quantum Development Kit, which simplify the development of quantum algorithms. This is a key reason I think it’s one of those quantum computing stocks to buy.
Many companies in the quantum industry are small speculative firms, while MSFT is perhaps as blue chip as they come in the technology sector. This then gives it a significant leg up over its competition for investors.
IBM (IBM)
IBM (NYSE:IBM) has long been a leader in quantum computing innovation, with significant investments in technology and partnerships aimed at advancing the practical applications of quantum computing.
I also like IBM’s positioning in the market for reasons similar to those of MSFT. It’s another great blue chip name in the tech space and pays an impressive 3.61% dividend yield.
Like MSFT, IBM continues to innovate in quantum software with Qiskit, a key tool for quantum computing programming. Qiskit 1.0, recently released, significantly improves circuit construction, compilation times and memory consumption.
IBM’s quantum roadmap for 2024 and beyond includes improving the quality and speed of quantum circuits and integrating higher-quality 100+ qubit Heron processors.
I think that the long-term winners of the quantum computing arms race will be blue chip companies in one way or another. A disruptive startup will likely get acquired by one of those marquee names if it’s perceived as either a threat or an opportunity. This then makes IBM and MSFT two serious contenders.
Baidu (BIDU)
Baidu (NASDAQ:BIDU) has been actively expanding into quantum computing, establishing a dedicated institute for research and development in this field.
Baidu’s quantum computer, Qian Shi, comes with a comprehensive hardware-software integration solution named Liang Xi, designed to simplify access to quantum resources across various platforms, including mobile and cloud environments. This system supports the creation of quantum algorithms.
Baidu also recently announced donating its quantum computing research facility to the Beijing Academy of Quantum Information Sciences (BAQIS). This move marks a shift in their strategy, positioning the company to potentially focus on other areas while still supporting quantum computing through collaborative efforts.
BIDU’s donation puts it out of the picture in terms of competition. Instead, it seems to have elevated its importance on a more national scale to China’s interests. As one of the most prominent tech companies in the region, my thesis is that it will continue to be the main beneficiary of quantum technologies.
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.