While the technology offers myriad innovations, investors ought to earmark the top quantum computing stocks for the speculative long-term section of their portfolio. Fundamentally, it all comes down to the projected relevance.
According to Grand View Research, the global quantum computing market size reached a valuation of $1.05 billion in 2022. Experts project that the sector could expand at a compound annual growth rate (CAGR) of 19.6% from 2023 to 2030. At the culmination of the forecast period, the segment could print revenue of $4.24 billion.
Better yet, we might be in the early stages. Per McKinsey & Company, quantum technology itself could lead to value creation worth trillions of dollars. Essentially, quantum computers represent a paradigm shift from the classical approach. These devices can generate myriad functions simultaneously, leading to explosive growth in productivity.
Granted, with every pioneering space comes high risks. If you’re willing to accept the heat, these are the top quantum computing stocks to consider.
Honeywell (HON)
To be sure, Honeywell (NASDAQ:HON) isn’t exactly what you would call a direct player among top quantum computing stocks. Rather, the company is an industrial and applied sciences conglomerate, featuring acumen across myriad disciplines. However, Honeywell is very much relevant to the advanced computing world thanks to its investment in Quantinuum.
Earlier this year, Honeywell’s quantum computing enterprise reached a valuation of $5 billion following a $300 million equity funding round, per Reuters. Notably, JPMorgan Chase (NYSE:JPM) helped anchor the investment. According to the news agency, “[c]ompanies are exploring ways to develop and scale quantum capabilities to solve complex problems such as designing and manufacturing hydrogen cell batteries for transportation.”
Honeywell could play a big role in the applied capabilities of quantum computing, making it a worthwhile long-term investment. To be fair, it’s not the most exciting play in the world. Analysts rate shares a consensus moderate buy but with an average price target of $229.21. That implies about 10% upside.
Still, Honeywell isn’t likely to implode either. As you build your portfolio of top quantum computing stocks, it may pay to have a reliable anchor like HON.
IonQ (IONQ)
Getting into the more exciting plays among top quantum computing stocks, we have IonQ (NYSE:IONQ). Based in College Park, Maryland, IonQ mainly falls under the computer hardware space. Per its public profile, the company engages in the development of general-purpose quantum computing systems. Business-wise, IonQ sells access to quantum computers of various qubit capacities.
Analysts are quite optimistic about IONQ stock, rating shares a consensus strong buy. Further, the average price target comes in at $16.63, implying over 109% upside potential. That’s not all – the most optimistic target calls for a price per share of $21. If so, we would be talking about a return of over 164%. Of course, with a relatively modest market capitalization of $1.68 billion, IONQ is a high-risk entity.
Even with the concerns, including an expansion of red ink for fiscal 2024, covering experts believe the growth narrative could overcome the anxieties. In particular, they’re targeting revenue of $39.47 million, implying 79.1% upside from last year’s print of $22.04 million. What’s more, fiscal 2025 sales could see a gargantuan leap to $82.38 million. It’s one of the top quantum computing stocks to keep on your radar.
Rigetti Computing (RGTI)
Headquartered in Berkeley, California, Rigetti Computing (NASDAQ:RGTI) through its subsidiaries builds quantum computers and superconducting quantum processors. In particular, Rigetti offers a cloud-based solution under a quantum processing umbrella. It also sells access to its groundbreaking computers through a business model called Quantum Computing as a Service.
While intriguing, RGTI stock is high risk. The reality is that the enterprise features a market cap of a little over $175 million. That translates to a per-share price of two pennies over a buck. With such a diminutive profile, anything can happen. Still, it’s tempting because analysts rate shares a unanimous strong buy. Also, the average price target lands at $3, implying over 194% upside potential.
What’s even more enticing are the financial projections. Covering experts believe that Rigetti will post a loss per share of 41 cents. That’s an improvement over last year’s loss of 57 cents. Further, revenue could hit $15.3 million, up 27.4% from the prior year. And in fiscal 2025, sales could soar to $28.89 million, up nearly 89% from projected 2024 revenue.
If you can handle the heat, RGTI is one of the top quantum computing stocks to consider.
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.