Wall Street Favorites: 3 Quantum Computing Stocks with Strong Buy Ratings for February 2024

Stocks to buy

Once people are done fawning over generative AI, investors might think, “what will be the next big thing?” The field of quantum computing may be just that. Quantum computing has the potential to solve complex problems that generally slow down classical computers, such as optimization, cryptography, machine learning, and simulation.

While quantum computing technology may still be in its infancy, investors desiring to invest in the up-and-coming technology should consider one of the following three quantum computing stocks with “Strong Buy” ratings from Wall Street analysts.

Quantum Computing Stocks: D-Wave Quantum (QBTS)

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D-Wave Quantum (NYSE:QBTS) is a well-established quantum computing company. In particular, D-Wave specializes in quantum annealing, a computing technique used to find the optimal solution for a given problem. The quantum computing firm has successfully built several quantum annealers with more than 5,000 qubits, which allows greater potential for commercial applications.

D-Wave Quantum offers its quantum annealers and software tools through its cloud platform, Leap. QBTS also offers a suite of developer tools called Ocean, which helps users design, develop, and deploy quantum applications. The quantum computing company has a diverse customer base, including government agencies and corporations. Most recently, D-Wave released its 1200+ qubit Advantage2 quantum computing machine prototype. Those already subscribed to the D-Wave Leap platform can access the prototype and test out its capabilities.

Wall Street analysts expect D-Wave to generate more than $10.5 million in revenue at the end of 2023, representing a 47% YoY increase from the prior period. The market seems excited about D-Wave Quantum’s prospects. Shares have risen 117% over the past 12 months, and the company has a “Strong Buy” rating from Wall Street analysts.

Advanced Micro Devices (AMD)

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Advanced Micro Devices (NASDAQ:AMD) is a fabless chipmaker that initially made a name after dethroning Intel (NASDAQ:INTC) in the CPU market. AMD is now poised to challenge and siphon market share away from Nvidia in the AI space as the chipmaker prepares to enter the AI computing market in 2024. The chipmaker expects to sell $2 billion in AI chips in 2024.

On top of tackling the artificial intelligence space, AMD has also made strides in quantum computing. The company’s Zynq SoCs have been leveraged to create operating systems for quantum computers. Though AMD’s quantum offerings are not a main line of business, as quantum computing becomes commercial, AMD will likely benefit from already having dipped its toes into the space.

Wall Street currently rates AMD as a “Strong Buy,” and the company’s shares are likely to do well this year as its AI chips come to market.

Rigetti Computing (RGTI)

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Rigetti Computing (NASDAQ:RGTI) is a pure-play quantum computing business that is vertically integrated. This means the company is involved in both designing and manufacturing its multi-chip quantum processors. Rigetti uses superconducting circuits as qubits fabricated on silicon chips and operating at near-zero temperatures. To deliver its quantum computing capabilities to clients, Rigetti leverages cloud service networks while also providing quantum software development tools as well as quantum hardware design and manufacturing.

In January, Rigetti Computing announced the availability of its 84-qubit Ankaa-2 quantum computing system, which will be accessible through Rigetti’s cloud service. RGTI’s shares have risen 53% over the past twelve months. As the company continues to make advancements in its product, shares could rise even more.

Wall Street analysts have given the stock a resounding “Strong Buy” rating.

On the date of publication, Tyrik Torres 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.

Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.

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