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3 Quantum Computing Stocks That Could Make Your Grandchildren Rich

For tech-centric investors, quantum computing stocks many offer the biggest bang for your buck. To make a long story short, the underlying innovation facilitates multiple processes to run simultaneously.  Therefore, it can dramatically outperform some of the fastest and most rigorous classical computer available. It all centers on the qubit.

Similar to the bit in classical computers, a qubit represents the basic unit of information in quantum computers. What makes qubits distinct, though, is the concept of superposition. Essentially, this block of information can be represented as a 0 or 1 or any proportion of these two binary values in both states simultaneously.

A very rudimentary explanation is that classical computers represent the equivalent of a single-lane roadway. On the other hand, quantum computers represent multi-lane expressways. Multiple cars can zip along the expressway at high speeds, enabling for far greater utility than a single-lane roadway.

Again, that’s a very basic analogy and oversimplifies the complex granularity involved. But this roughly addresses why the sector is so enticing. And with that, below are some of the top quantum computing stocks to consider.

IBM (IBM)

Source: shutterstock.com/LCV

To be blunt, legacy tech giant IBM (NYSE:IBM) probably isn’t going to make you rich, at least not in the 1,000% return over the course of a few years sense. Nevertheless, I’d consider Big Blue to be one of the top quantum computing stocks for generational wealth. That’s because if history is any guide, IBM isn’t going anywhere. Incorporated in 1911, it’s older than all of us and will likely outlive us.

Another aspect that makes IBM compelling is the underlying financial consistency. You’re probably not going to see too many remarkable results. However, in the past four quarters, the tech giant posted an average earnings per share of roughly $2.44. This print translated to an earnings surprise of almost 4.9%.

During the trailing 12 months (TTM), IBM posted net income of $8.15 billion or earnings of $8.82 per share. Revenue hit $62.07 billion. For the year, covering experts believe EPS may rise 3.3% to $9.94. On the top line, sales could see a 2% increase to $63.05 billion.

These aren’t standout stats. However, keep in mind that IBM offers a forward yield of 3.86%.

Rigetti Computing (RGTI)

IBM Q System One Quantum Computer at the Consumer Electronic Show CES 2020. Quantum computing stocks.

Source: Boykov / Shutterstock.com

Based in Berkeley, California, Rigetti Computing (NASDAQ:RGTI) falls under the computer hardware space. Per its public profile, Rigetti builds quantum computers along with superconducting quantum processors. It’s an intriguing idea among quantum computing stocks, especially because it could be relatively undervalued. RGTI trades at 11.55X trailing-year sales. In the first quarter, it traded at 16.82X.

As exciting as Rigetti is, however, it’s undoubtedly a risky entity. During the past four quarters, its average loss per share came out to 13.3 cents. Further, the average “earnings” surprise landed at almost 4% below breakeven. That’s not exactly the most encouraging profile.

In the TTM period, Rigetti incurred a net loss of $72.53 million or 52 cents per share. However, revenue in the period reached $12.86 million. What’s more, the most recent quarterly sales growth rate (year-over-year) hit 38.7%.

For fiscal 2024, analysts see a mitigation in loss per share to 41 cents. More importantly, sales could rise 27.4% to land at $15.3 million. For those willing to throw caution to the wind, RGTI ranks among the quantum computing stocks to consider.

IonQ (IONQ)

A concept image of a processor representing quantum computing. IONQ Stock. quantum computing stocks

Source: Amin Van / Shutterstock.com

Another hardware specialist, IonQ (NYSE:IONQ) engages in the development of general-purpose quantum computing systems. In particular, the company utilizes its trapped-ion technology for its advanced systems. This innovation provides a key advantage related to qubit coherence and scalability. Basically, IonQ is attempting to build the foundation for large-scale quantum systems.

What makes IONQ stock especially enticing is that the underlying quantum computers are accessible through major cloud platforms. That should help overall visibility. However, investors shouldn’t be under any misguidance: IONQ is a high-risk, high-reward endeavor. During the past four quarters, the company incurred a loss per share of almost 21 cents. The average quarterly surprise landed at 16.85% below parity.

In the TTM period, IonQ incurred a net loss of $170 million. However, revenue in the period hit $25.34 million. Further, the most recent quarterly sales growth rate clocked in at almost 77%. For fiscal 2024, the loss per share could expand unfavorably to 87 cents. However, revenue may fly 79.1% to $39.47 million. Bet on it only if you can handle the volatility risk.

On the date of publication, Josh Enomoto 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.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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