Quantum computing was only a hopeful theory a few decades ago, but today, it’s a reality, and big companies are racing to own a stake in the exploding sector.
Tech giants like Intel Corp. (NASDAQ: INTC) and Google (NASDAQ: GOOGL) are pouring millions into quantum computing development and research in an effort to reach “quantum supremacy,” a phenomenon where a quantum computer maxes out its potential for computing efficiency.
Some investors are still skeptical and skittish when it comes to these next-generation computers, but that’s mostly from a lack of understanding precisely what the technology can do. That’s because quantum computing is disruptive on the same scale as the first PC or the Internet – its wide adoption has the potential to change literally every industry on Earth.
And the first steps to that adoption are already taking place.
Last month, IBM announced a three-year collaboration with HSBC Bank to pursue new applications for quantum computing in financial services.
Biogen, a pharmaceutical industry giant, has been working with 1Qbit, a quantum software supplier, and Accenture, a consulting firm, to develop systems where quantum computers can help speed up the process of discovering new drugs.
It’s still early days for the technology, but that’s precisely why now is the best time for investors to get in and claim a substantial stake. Experts predict that the market will reach more than $8.5 billion in 2027, up from $412 million in 2020.
This sector has enormous potential to hand you life-changing wealth, and it’s easier than ever to invest. Our team has selected two great picks to get you started, one with a potential upside of 170% in the next 12 months.
Read on for the tickers…
This Is the Firm Behind Google’s Quantum Computer
Since 2013, Rigetti Computing Inc. (NASDAQ: RGTI) has been developing quantum integrated circuits and software for quantum computing algorithms. Its technology is behind many of the world’s most powerful computers, including Google’s D-Wave Quantum Computer, and Peter Diamandis, the founder of the X-Prize, recognized the company as just one of three major players in the space right now.
The company has had an exceptional year, with an 85.95% year-over-year revenue increase and a 19.16% net profit margin increase.
Its early successes and skyrocketing growth led it to go public via a SPAC deal back in March. Although its share price sits around an incredibly cheap $8 as of this writing, the stock has risen more than 20% in the past month, and its forecast is promising.
Analysts expect Rigetti stock to reach $19 in the next 12 months, handing investors a 170% potential upside.
You’ll want this growing stock in your portfolio, and faster action will bring the largest profit gain.
This Is the Only ETF Focused on Quantum
For a lower-risk approach to spread your money across the flourishing quantum sector, look no further than the Defiance Quantum ETF (NYSEArca: QTUM).
As the first and only ETF focused on quantum computing stocks, Defiance Quantum is a smart buy for investors looking to capitalize on the benefits of quantum computers.
The ETF invests in some of the top stocks in the industry – its holdings include mainstays like Alphabet Inc. and Microsoft, but also manufacturers and smaller companies like Tower Semiconductor – which have been growing exponentially. The fund has one of the lowest expense ratios of any ETF, at 0.15%, which means higher returns on every dollar you invest.
Since it launched in 2014, it’s handed investors over 600% in returns. With the quantum sector still in its early days, the ETF’s past success bodes well for its future.
As of this writing, the fund costs about $44 per share, and based on the past two years of stock performance, it could rise 41.9% within the next 12 months. The fund is teeming with potential, but we recommend waiting for the next dip and pouncing on the discounted price.
Even at its current price, however, QTUM is an excellent long-term hold that lets you own a broad swath of the quantum computing industry at a low cost.
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Source: Money Morning