Muslim Farooque
·4 min read
Quantum computers could potentially revolutionize multiple industries with their unparalleled efficiency and scalability compared to transistor-based CPUs. Analysts point to an estimated $125 billion market up for grabs by the conclusion of the current decade. Therefore, quantum computing stocks to buy offer tremendous upside ahead, with a sector poised for a staggering 37% annualized growth rate through 2030.
Quantum computers can effectively tackle complex and large-scale problems across various sectors, including transportation, chemicals, banking, and others, attracting substantial investment. Moreover, Wall Street’s spotlight turned to this burgeoning sector in 2021. Furthermore, according to McKinsey’s research, quantum technology companies secured a whopping $1.4 billion in funding in 2022, more than doubling the previous year’s figure.
Despite its promising future, the sector is still in its nascency, with investments primarily focused on research and development. With that in mind, let’s consider the three most promising quantum computing stocks to buy this month.
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Quantum Computing Stocks to Buy: IBM (IBM)
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IBM(NYSE:IBM) is one of the top quantum computing plays, which boasts an incredible line-up of products in the sector. It boasts over 20 of the most powerful quantum computing systems, with itsmost recent 433 qubits release.
In 2016, it released its first publicly available codable quantum computer, following up the IBM Falcon in 2019. The Falcon is the first commercially available quantum computer, which has become the most popular system to date. Moreover, IBM plans to release its much-talked-aboutCondor computer, which can effectively handle 1,121 qubits. Over the next couple of years, the company plans to have a processor with a whopping 4,158 qubits.
Though quantum computing represents just a small part of IBM’s business, IBM stock could move independently in line with the expansion in the quantum computing space.
IonQ (IONQ)
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IonQ(NYSE:IONQ) is arguably the best pure-play in the quantum computing space. The firm is developing trapped-ion quantum computers that can be used effectively for general use and haspartnershipshaving a profound impact on its financials. Many of these partners have massive cash war chests, including Microsoft(NASDAQ:MSFT) and Dell(NYSE:DELL).
Revenues for the firm have been rising tremendously each quarter, with sales rising 130.9% from the fourth quarter of last year to the fourth quarter of 2022. Moreover, its gross margins stand at a remarkable 76.3%, with the firm recently announcing the completion of its 32-qubit quantum computer.
Furthermore, it has a robust balance sheet with$355 million in cashand short-term investments. With this stockpile, the company can effectively weather the economic volatility for the foreseeable future and continue pushing toward long-term expansion.
Taiwan Semiconductor (TSM)
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As the quantum computing revolution gains momentum, semiconductor giant Taiwan Semiconductor(NYSE:TSM)has made impressive strides to stay ahead of the curve. Semiconductors are critical components in quantum computing, facilitating the creation of advanced processors. With TSMC’s leading position in the chip sphere, it has the potential to become a major player in the quantum computing space.
Furthermore, in its unique collaboration with Taiwan’s Ministry of Science and Technology, the firm has unveiled a state-of-the-art cloud computing platform that effectively unlocks the potential of quantum algorithms for businesses. This fruitful partnership is expected to span nearly five years, positioning the company as a trailblazer in this evolving space.
Its underlying business remains incredibly robust, with it generating an incredible 16% and 17% growth in sales and EBITDA, respectively, over the past five years. The semiconductor shortage led to a hefty margin bump this year, with the company aiming for 15% to 20% sales growth in U.S. dollar terms. Moreover, it also targets profit margins north of 50%, with an impressive return on equity of over 25%.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post The 3 Most Promising Quantum Computing Stocks to Buy in April appeared first on InvestorPlace.
I am an enthusiast with extensive knowledge in the field of quantum computing, a revolutionary technology that has the potential to transform various industries. My expertise is demonstrated by my in-depth understanding of the concepts and key players in the quantum computing market. I have kept abreast of the latest developments, market trends, and financial aspects, making me well-equipped to analyze and discuss the information presented in the article by Muslim Farooque.
Overview of the Article: The article, written by Muslim Farooque on April 13, 2023, delves into the potential of quantum computers to revolutionize industries and highlights the significant market opportunity estimated at $125 billion by the end of the current decade. The focus is on quantum computing stocks to buy, with a projected annualized growth rate of 37% through 2030.
Concepts Covered:
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Quantum Computing's Revolutionary Potential:
- Quantum computers are poised to bring unparalleled efficiency and scalability compared to traditional transistor-based CPUs.
- The estimated $125 billion market opportunity indicates the transformative impact quantum computing could have on multiple industries.
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Market Dynamics and Investment Trends:
- The quantum technology sector attracted substantial investment, with companies securing $1.4 billion in funding in 2022, more than doubling the previous year's figure.
- Despite being in its early stages, the sector is gaining attention, with investments primarily focused on research and development.
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Top Quantum Computing Stocks to Buy:
a. IBM (IBM):
- IBM is a key player in quantum computing, boasting over 20 powerful quantum computing systems.
- The article highlights IBM's recent release of a 433 qubits quantum computer and plans for the Condor computer with 1,121 qubits.
b. IonQ (IONQ):
- IonQ is considered a top pure-play in the quantum computing space, developing trapped-ion quantum computers.
- The company has strong partnerships with major players like Microsoft and Dell, contributing to its financial success.
- IonQ reported significant revenue growth and a robust balance sheet with $355 million in cash and short-term investments.
c. Taiwan Semiconductor (TSM):
- Taiwan Semiconductor, a semiconductor giant, is positioning itself in the quantum computing space.
- TSMC's collaboration with Taiwan’s Ministry of Science and Technology includes a state-of-the-art cloud computing platform for quantum algorithms.
- The semiconductor company has demonstrated impressive sales and EBITDA growth over the past five years, with a focus on maintaining a leading position in the chip sphere.
Conclusion: The article provides valuable insights into the potential of quantum computing, highlighting key stocks such as IBM, IonQ, and Taiwan Semiconductor as promising investment opportunities in April 2023. The analysis covers technological advancements, financial performance, and strategic collaborations, offering readers a comprehensive overview of the quantum computing landscape.
