5 Undervalued Quantum Tech Stocks For Q1 2024 📈

The Quantum Chronicle - Quantum & Emerging Tech

Published in

Coinmonks

4 min readJan 26, 2024

Explore the revolutionary potential of quantum computing with these 5 stocks that could rise significantly in February 2024

#5 — Intel (Intel):

Intel’s lead in the semiconductor market was lost. A few years ago, Intel was surpassed by third-party foundry Taiwan Semiconductor Manufacturing (TSM -1.02%), and many other businesses, like Nvidia, are valued significantly higher due to their greater exposure to growing markets like GPUs for AI.

However, Intel is making a strong return. One of its projects is Tunnel Falls, a quantum computer chip. The research community can now access the silicon-based chip, which is manufactured using the most sophisticated techniques by Intel. To test Tunnel Falls, Intel claims to have teamed up with multiple government agencies and academic institutions.

Intel does not rely heavily on quantum computing in its strategy to take back the lead in the semiconductor market. However, if research shows promise, it might grow into a significant market for the massive integrated chip design and manufacturing company in the future.

#4 — Nvidia (NASDAQ: NVDA):

Nvidia is now the world leader in sophisticated semiconductor designs, and its graphics processing units (GPUs), which boost processing capacity, are the engine behind next-generation technology.

Using its GPUs, Nvidia is contributing to the development of quantum computers and maintaining its position as a pioneer in the creation of complex circuit designs. Additionally, the business is a pioneer in machine learning and AI.

#3 — IBM (IBM):

Arguably leading the charge in the revolution of quantum computing is this massive IT company.

IBM is an established technology company that is focussing on the potential in cloud computing. Additionally, the company’s IBM Quantum business arm offers its own quantum computing systems and chips for sale. IBM’s quantum computing services are utilized by over 210 research groups and corporations, which include financial services companies, automakers, and energy providers.

The business recently said that it has agreed to develop artificial intelligence (AI) and quantum computing for the aerospace, defense, and intelligence sectors with government contractor Raytheon Technologies (RTX -0.6%). The principal user of the scientific partnership will be the US government.

#2 — FormFactor (FormFactor):

FORM plays a vital role in helping businesses creating quantum computers and semiconductor manufacturers testing cutting-edge chips.

Forensic cards are the company’s specialty; these are used to test silicon wafers and chips for defects. But, FormFactor also has a “Systems” business unit, where it houses its cryogenic systems, which are essential to the construction of quantum computers and to test chips at the quantum level.

FormFactor’s financial results will be primarily tied to the semiconductor manufacturing industry, but the stock is worth watching if investors want to get in early on the development of quantum computing.

#1 — IonQ (IonQ):

As demand for its products rises, the company has increased its estimates for full-year revenue and bookings.

IonQ’s orientation toward cloud computing is illustrated by its partnerships with Microsoft, Amazon’s (AMZN -0.36%) Web Services (AWS), and Google Cloud. The Japanese telecommunications company and tech investor SoftBank Group (SFTBF 2.2%) also has invested in IonQ and is partnering with the company to bring quantum computing power to the many other tech companies in its portfolio. IonQ’s most powerful computer, Aria, is now available via an Amazon AWS service.

IonQ is not yet profitable and currently earns little in the way of revenue. It will require at least a few more years of significant expenditure in order to develop its products and operations. Putting money into this startup is a risky move. If IonQ is successful, the stock might be the most profitable method to invest in quantum computing, but investors should exercise caution because this is still a start-up company.

Are stocks in quantum computing a wise investment?

Even though quantum computing is still in its infancy, a lot of funding is going toward developing this cutting-edge technology. In the long run, quantum computing has the potential to complement traditional computers and significantly speed up technological advancements in sectors like finance, healthcare, and materials manufacturing.

While pure-play quantum computing companies are hard to come by, investing in tech behemoths exposed to quantum computing has the potential to produce significant returns in the coming decades.