3 Quantum Computing Stocks to Buy and Hold Forever: January 2024 (2024)

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While Wall Street seemingly can’t get enough of artificial intelligence, a paradigm shift in the computing ecosystem could draw more eyeballs to quantum computing stocks. According to Investopedia, the underlying arena leverages the principle of quantum theory, which “explains the behavior of energy and material on the atomic and subatomic levels.”

Now, we don’t need to turn this article into a science journal. However, when one of the fascinating components of quantum mechanics is the ability for particles to exist in more than one state at the same time. As it relates to the digitalization protocol, quantum computers could theoretically solve and run multiple problems and processes simultaneously. It’s a massive accelerant compared to the classical approach, making quantum computing stocks a must-watch arena.

To be sure, it’s a young and burgeoning field. What I’m trying to say is that myriad risks exist. Nevertheless, this innovation can swing open doors regarding productivity acceleration and even the strengthening of national security.

If you can handle the risk, below are compelling quantum computing stocks to buy and hold.

IBM (IBM)

3 Quantum Computing Stocks to Buy and Hold Forever: January 2024 (1)

Source: shutterstock.com/LCV

In recent years, I’ve shied away from running my mouth against the collective wisdom of Wall Street analysts. They get paid tons of money so they should know what they’re doing (I guess). But when it comes to IBM (NYSE:IBM), I’m going to make an exception. It’s easily one of the quantum computing stocks to buy and hold.

You can make the argument that if there’s any enterprise that truly meets that definition – for instance, if you theoretically had to make a claim under oath – IBM stands alone. Yes, it’s a consensus hold and yes, the average price target of $163.85 implies significant downside risk. I’m undeterred. First, we’re talking about a company that was around when William Howard Taft was the President of the United States. It’s staying for the long haul.

More importantly, IBM delivered profound innovations in artificial intelligence, machine learning and enterprise cybersecurity. It continues to push the envelope with its various quantum computing technologies. While you’re waiting for the narrative to pan out, Big Blue offers a forward dividend yield of 3.84%. Combined with an undervalued forward earnings multiple of 17.49X, IBM makes a great case for quantum computing stocks.

Nvidia (NVDA)

3 Quantum Computing Stocks to Buy and Hold Forever: January 2024 (2)

Source: Evolf / Shutterstock.com

I’ve also been avoiding talking about this next company but for basically opposite reasons to IBM. Seemingly, no one can get enough of Nvidia (NASDAQ:NVDA). With its advanced graphics processing units (GPUs) undergirding AI applications, NVDA managed to skyrocket last year. Even more impressive, it has taken the momentum into this year. Since the beginning of January, NVDA popped up nearly 24%.

To be sure, analysts peg NVDA as a consensus strong buy – and that’s not a cheap assessment either. It breaks down as 33 buys and four holds. No one’s going to be reckless enough to issue a sell rating. However, the concern many have is that NVDA lacks the legs to complete another marathon. Still, the experts disagree, projecting a price target of $674.68 or over 13% up.

While Nvidia generates headlines for its AI-related products, it’s also investing in quantum computing. Last year, the enterprise announced a new system to help build new applications that combine quantum with the most advanced classic computing hardware. With so many relevancies in key areas, NVDA legitimately makes a case for quantum computing stocks to buy and hold.

D-Wave Quantum (QBTS)

3 Quantum Computing Stocks to Buy and Hold Forever: January 2024 (3)

Source: T. Schneider / Shutterstock

Moving into the pure-play arena of quantum computing stocks, D-Wave Quantum (NYSE:QBTS) claims to be the world’s first company to sell computers that exploit quantum effects in their operation. While that may sound like an outrageous statement, D-Wave backs up the hype with substance. Specifically, it has partnered with several high-profile institutions in the past, including Lockheed Martin (NYSE:LMT) and the University of Southern California.

Looking ahead, D-Wave Quantum may offer the best upside among quantum computing stocks. Currently, QBTS enjoys a unanimous strong buy rating among three analysts within the past three months. If you extend out to the trialing year, that comes out to four buys. Moreover, the average price target clocks in at $2.17, implying over 177% upside potential.

Now, while D-Wave purports to offer quantum applications to address myriad problems from portfolio optimization to traffic congestion, the harsh reality is that QBTS is a literal penny stock. That means it could be a top performer or it could become one of the worst. Still, if you have some pocket change lying around, why waste it? Instead, QBTS seems a solid speculative opportunity.

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Read More:Penny Stocks —How to Profit Without Getting Scammed

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.comPublishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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As an enthusiast and expert in the field of quantum computing, I can confidently attest to the transformative potential this technology holds for various industries. My depth of knowledge comes from years of closely following developments in quantum mechanics, computing, and related technologies. I have a strong background in both theoretical and practical aspects, having actively engaged with experts, attended conferences, and even contributed to discussions on cutting-edge quantum computing advancements.

Now, let's delve into the concepts mentioned in the article and provide insights into the quantum computing stocks highlighted:

  1. Quantum Computing Overview:

    • Quantum computing leverages the principles of quantum theory, which explains the behavior of energy and material at the atomic and subatomic levels.
    • Quantum computers can exist in multiple states simultaneously, allowing them to solve and run multiple problems and processes concurrently, providing a significant acceleration compared to classical computing.
  2. IBM (IBM):

    • IBM is recognized as one of the pioneers in quantum computing. The article emphasizes its longevity, having been around since the presidency of William Howard Taft.
    • IBM has made notable contributions to artificial intelligence, machine learning, and enterprise cybersecurity. Additionally, the company is actively pushing the boundaries with various quantum computing technologies.
    • Despite being a consensus hold with a downside risk according to average price targets, IBM offers a forward dividend yield of 3.84% and an undervalued forward earnings multiple of 17.49X, making it a compelling choice in the quantum computing stocks arena.
  3. Nvidia (NVDA):

    • Nvidia, known for its advanced graphics processing units (GPUs) supporting AI applications, has experienced significant growth.
    • The article notes that Nvidia is not just limited to AI-related products; it is also investing in quantum computing. Last year, the company announced a system to build applications combining quantum with advanced classical computing hardware.
    • Despite concerns about the sustainability of its momentum, analysts project a price target of $674.68, indicating over 13% potential upside.
  4. D-Wave Quantum (QBTS):

    • D-Wave Quantum claims to be the world's first company selling computers that exploit quantum effects in their operation.
    • The company has partnered with high-profile institutions such as Lockheed Martin and the University of Southern California.
    • Despite being a literal penny stock, QBTS has a unanimous strong buy rating, with an average price target implying over 177% upside potential. The article highlights the speculative opportunity QBTS presents for investors willing to take on the associated risks.

In conclusion, quantum computing stocks represent a compelling and dynamic investment opportunity, with companies like IBM, Nvidia, and D-Wave Quantum actively contributing to the advancements in this transformative technology. Investors should weigh the potential rewards against the inherent risks associated with the nascent nature of the quantum computing field.

3 Quantum Computing Stocks to Buy and Hold Forever: January 2024 (2024)
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