Quantum computing could change just about everything. Not only can it solve complex calculations at high speed, but it could also help accelerate drug development, improve financial models, and increase the performance of batteries for electric vehicles. It may even help with climate change issues. And it could just spawn a bunch of quantum computing stocks making millionaires, similar to what we’ve seen with artificial intelligence.
Even better, according to IDC, the quantum computing market could grow from about $412 million in 2020 to $8.6 billion in 2027, at a compound annual growth rate of more than 50%. The company points to major breakthroughs in the industry, the advancement of quantum computing as a service and the growth in workloads could account for a significant portion of the quantum computing market. We also have to keep in mind that many potential quantum computing millionaire stocks are already on the move.
That being said, here are three top stocks that could turn out to be your next quantum computing millionaire.
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When I first mentioned IonQ (NYSE:IONQ) in March, it was trading at $4.56. Today it is at $14.40 and it could easily make higher highs. To fuel its rise, the company just raised its 2023 booking estimates by 25% to a new range of $45 million to $55 million. At the midpoint, the company expects bookings to grow more than 100% year over year. This follows news of IONQ’s agreement to install two quantum systems in Europe.
The company is currently working with Switzerland, which currently lags behind most other European countries in quantum computing. However, that could change if IonQ and QuantumBasel work together to build a European quantum data center.
Even more exciting, the partnership could improve the drug development process and potentially lead to treatments for diseases once thought to be incurable. With quantum computing, drug developers can create predictive models that can identify which molecules are likely to yield effective drug candidates. That alone could fundamentally change medicine.
Rigetti Computing (RGTI)
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Then there’s Rigetti Computing (NASDAQ:RGTI), a small but explosive quantum computing stock. Over the past few weeks, the RGTI surged from around 36 cents to a high of $2.37 before falling to the $1.72 support level. From here, I would like to see the price rebuild its bearish gap around $4.15 at some point. While it takes some patience, it’s doable as the quantum computing story gathers momentum.
Yields weren’t too bad either. For the first quarter, the company’s GAAP EPS was down 19 cents, beating expectations by 2 cents. Revenue rose nearly 5% to $2.2 million, beating estimates by $1.88 million.
Defiance Quantum ETF (QTUM)
If you’re simply looking to diversify into all the quantum computing heavyweights, you can invest in the Defiance Quantum ETF (NYSEARCA:QTUM). With an expense ratio of 0.40%, the ETF tracks the BlueStar Quantum Computing and Machine Learning Index, which tracks about 71 related stocks. His top stocks include IonQ, Rigetti Computing, Nvidia (NASDAQ:NVDA), and NXP Semiconductors (NASDAQ:NXPI), to name just a few of the top quantum computing stocks.
Since May, the ETF has risen from around $43 to a recent high of $51.19. However, as more investors recognize this opportunity and it helps drive things like drug development, I have a strong belief that QTUM could double in value from current prices.
At the time of publication, Ian Cooper held no direct or indirect positions in any of the securities mentioned. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication guidelines.
Ian Cooper, an InvestorPlace.com contributor, has analyzed stocks and options for web-based consulting since 1999.