For the past few months, quantum computing stocks have been on a wild roller coaster ride. We have seen top investments like IonQ (IONQ), Quantum Computing (QUBT), D-Wave Quantum (QBTS), and Rigetti (RGTI) gain hundreds of percent within a few months only to plummet 50%-plus in a matter of days. In fact, they’ve been known to bounce 20% – higher or lower – over a single day.
Clearly, quantum computing stocks have not enjoyed much smooth sailing.
But we think this ongoing wild ride could be set to lift these stocks far higher.
Of course, we’re taking the 400-foot-view here. It’s obvious that quantum computing represents a massive technological breakthrough. By harnessing the power of quantum physics to change the underlying structure of traditional computers, we’d make them infinitely faster and more powerful. (To read much more about this technology’s potential, check out the recent issue of Hypergrowth Investing that delves deep into the weeds of this topic.)
Considering that the entire world is built on top of computers – as most of us work, play, communicate, shop, get our news, etc., on these machines – quantum computing capability could easily reshape global society.
Imagine: every application, every piece of software, every AI model, every online transaction would be significantly faster and more efficient.
It’s easy to see the massive potential that quantum computing technology holds. Very few would argue that.
But many argue about when we’ll achieve that level of computing, which is why quantum stocks have been so volatile recently.
Quantum Computing Talk Is Cheap
The ongoing quantum debate isn’t about whether this technology could be a huge breakthrough. It’s about when these huge breakthroughs will actually happen – and when such next-gen computing will enter the real world.
Nvidia (NVDA) CEO Jensen Huang thinks it won’t be for a while. As we heard recently, Huang believes practical quantum computing applications are still about 20 years away. This pessimistic take is what started the latest quantum stock selloff.
Then, Meta (META) CEO Mark Zuckerberg piggy-backed on that claim. Although he was very clear in saying he’s not an expert on the subject, he did say that he thinks quantum computing is still a far way off.
With two major tech CEOs signalling for investors to pump the brakes, quantum stocks have naturally been under significant pressure lately.
But… as they say… talk is cheap…
Because while Huang and Zuckerberg are pouring cold water on the subject, companies across the tech industry – including Huang’s very own Nvidia – appear to be bracing for massive quantum breakthroughs this year.
QC’s Timeline: Faultless or Fictitious?
This past week, Microsoft (MSFT) announced its first-ever Quantum Ready program, a slate of workshops and industry-specific forums to help business leaders get acquainted with quantum computing.
In a blog post announcing the program, Microsoft said that it expects the pace of quantum research and development to accelerate over the next 12 months. “We are at the advent of the reliable quantum-computing era,” Microsoft wrote. “And we are right on the cusp of seeing quantum computers solve meaningful problems and capture new business value.”
It certainly doesn’t seem like Microsoft – which, for what it’s worth, was an early AI leader with its big investment in OpenAI, maker of ChatGPT – thinks quantum computing is decades away from being a practical reality. The tech titan seems to be bracing for it to become a practical reality later this year.
Nvidia, oddly enough, seems to be doing the same.
Although Huang may be saying that practical quantum computing applications are two decades away, his company is doing quite a bit right now to advance its own quantum computing initiatives.
That is, the firm is currently busy hiring quantum engineers. It also just announced its inaugural Quantum Day – an event to specifically highlight recent advancements and potential opportunities in the field of quantum computing.
Clearly, Nvidia thinks this technology is close enough to start committing serious money, talent, and resources toward it…
Key industry players like D-Wave and IonQ will be attending Nvidia’s Quantum Day.
In fact, speaking of those two firms, D-Wave recently landed a partnership with Carahsoft – a computer reseller network for federal agencies – to have the latter sell quantum computing technology to the public sector. And IonQ just announced an initiative to invest $1 billion in the state of Maryland, establishing it as the epicenter of the quantum computing revolution.
The Final Word on Quantum Computing Stocks
I’m not sure Huang and Zuckerberg are reading the same headlines that I am because the news flow surrounding quantum computing right now seems to suggest one thing: This technology has arrived – and it is only going to progress further until it changes the world forever.
So… is time to buy the dip in quantum computing stocks?
I think so – certainly not all, but a few of them. IonQ is our favorite pick in the space. The firm is making some impressive moves, and the stock looks ready to roar back to life.
Now may well be the moment to pounce… because the market just triggered some major bullish fundamental and technical signals.
Yesterday’s Consumer Price Index (CPI) report showed that the core U.S. inflation rate declined last month for the first time in six months – a huge positive for stocks.
Meanwhile, on the technical side of things, the S&P 500 just bounced strongly off major technical support levels – its 2024 uptrend support line and 100-day moving average – suggesting further strength ahead.
In other words, we really like the setup for the market right now.
And to help us find some of the best stocks to buy for a rebound, we’re turning to Elon Musk – the world’s richest man – and his startup, xAI.
We’re confident that firm has the opportunity to become a major winner in this next phase of the AI Boom.
And while it’s not yet publicly traded, we’ve found a promising ‘backdoor’ way to invest in the company.
Learn more about xAI and its portfolio-boosting potential now.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.
