The quantum computing industry is emerging as one of the most dynamic frontiers for investment, fueled by a growing demand from both commercial and government sectors.
While skepticism from prominent industry figures like Nvidia (NASDAQ: NVDA) CEO Jensen Huang and Meta Platforms (NASDAQ: META) CEO Mark Zuckerberg has cast doubts on the near-term practicality of quantum technology, the sector remains poised for significant long-term growth.
With market forecasts projecting quantum computing to expand from $1.16 billion in 2024 to $12.6 billion by 2032, this industry is gaining traction as a long-term investment theme.
Picks for you
Against this backdrop, Finbold analyzed market trends and, with insights from ChatGPT-4o, identified two quantum computing stocks with significant growth potential.
IonQ (NYSE: IONQ)
Despite the growing skepticism, IonQ’s (NYSE: IONQ) recent accomplishments highlight IonQ’s potential for long-term growth. Partnerships with Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) highlight its role in cloud-based quantum technologies.
For instance, the extended collaboration with Amazon allows users to access IonQ’s advanced systems via Amazon Braket, further supporting its role as a key player in cloud-based quantum technologies.
IonQ has also secured significant government contracts, including a $21.1 million project with the U.S. Air Force Research Lab (AFRL), following a $54.5 million AFRL deal in September, alongside its contract with ARLIS on blind quantum computing networks.
Additionally, its partnership with AstraZeneca to develop quantum applications for drug discovery marks a major step toward real-world industrial applications. In its latest quarterly report, IonQ posted a 102% revenue increase to $12.4 million, surpassing Wall Street expectations. CEO Peter Chapman delivered a bullish outlook, projecting profitability by 2030 with annual sales reaching $1 billion.
As of the market close on January 14, IonQ shares were trading at $29.51, up 5.92% in the past 24 hours.
Despite its recent gains, the stock remains 42.16% below its all-time high of $51 and is down 31% on the year-to-date, offering an attractive entry point for investors looking at its long-term potential.
D-Wave Quantum (NYSE: QBTS) stock
D-Wave Quantum (NYSE: QBTS) is shaping up as an attractive opportunity for investors, supported by its focus on quantum annealing technology and its expanding partnerships.
The company recently announced a collaboration with Carahsoft Technology Corp. to bring quantum solutions to the U.S. public sector.
As part of the agreement, Carahsoft will serve as D-Wave’s Master Government Aggregator, allowing public sector organizations to access D-Wave’s advanced quantum solutions through its network of reseller partners and various government purchasing contracts.
This partnership is expected to help accelerate the adoption of quantum technology in critical areas like defense and infrastructure optimization.
Moreover, international partnerships with NTT DOCOMO to reduce network congestion and Japan Tobacco to enhance drug discovery show D-Wave’s growing relevance in real-world applications.
Additionally, D-Wave reported that fiscal 2024 bookings are set to surpass $23 million, representing a 120% increase from 2023 levels, with Q4 bookings projected to reach $18 million, an impressive 500% year-over-year growth.
Trading at $4.73 as of January 14, after a 54% drop in five days, the stock offers a potential entry point for those confident in its long-term growth.
As quantum computing matures, these companies are set to play key roles in shaping the industry, providing investors with an opportunity to capitalize on one of the hottest investment themes of the decade.
Featured image via Shutterstock
